ISLAMABAD (DNA) – The government has agreed to stepwise increase electricity prices by Rs2.60 per unit after the bailout deal with the International Monetary Fund (IMF).

The hike in rates will provide relief to the national exchequer worth Rs200 billion that are given as subsidy. The prices are scheduled to be surged in two phases which will create a new wave of inflation.

Further details suggest that Rs1.30 per unit are likely to be increased from July 1 in first step, and the same amount again from September 1 in second phase.

The price of one unit of electricity will surge to Rs15.58 from Rs12.98 as per the new tariff. The government has also ensured the IMF to reduce its circular debt, improve distribution and control line losses and electricity theft.