ISLAMABAD: Amid reports of a 10% surcharge on electricity bills, Federal Board of Revenue (FBR) Chairman Rashid Mehmood Langrial clarified on Wednesday that no additional surcharge has been imposed so far.
His clarification comes as sources revealed that the federal government is planning to introduce a 10% surcharge on electricity bills in a bid to control the growing circular debt.
The move, if finalized, would require amendments to the NEPRA Act, allowing the government to levy the surcharge under the Debt Servicing Surcharge (DSS) mechanism.
A new system is also expected to be introduced to implement the plan effectively.
While energy experts have called the proposal politically sensitive, they say it is necessary to restore the energy sector and remain aligned with IMF-backed structural reforms. Historically, such surcharges have been used to pay off interest on circular debt.
This time, the government intends to secure a loan of Rs1,275 billion from commercial banks, to be recovered from consumers over the next six years through the surcharge.
Experts warn that once the NEPRA Act is amended, it may pave the way for permanent electricity price hikes, further increasing inflation and financial strain on households.
