Electricity, medicine, ghee, milk prices up

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday approved a raise of Rs1.62 per unit in power tariff on account of fuel adjustment cost for the second and third quarters of Financial Year 2019-20. The consumers would be burdened with Rs164.87 billion if the government approved the hike.

The decision was taken in the light of requests filed by the power distribution companies last financial year. “The authority has determined a uniform rate of Rs1.6236/kWh attached as Annex-I with the instant decision, for the allowed amount of quarterly adjustments of Rs73,065 million pertaining to the 2nd quarter and Rs91,805 million for the 3rd Quarter of FY2019-20 (total Rs164,870 million),” reads a press release by the Nepra.

“Since the federal government’s power to impose surcharges has been removed through an amendment in the Nepra Act, the federal government shall not rationalize the allowed uniform rate of Rs1.6236/kW upwards for any consumer category.”

The decision to hike the electricity tariff will not be applicable to K-Electric. Meanwhile, the prices of many essential items have been hiked at the Utility Stores and a notification in this regard has been issued. The decision comes into force with immediate effect.

The cooking oil price has been raised by Rs17 per litre, ghee Rs4 per kg, and milk Rs5 per litre. Prices of tea whitener, coffee, shampoo and detergents have also been hiked. Meanwhile, talking to media here, Special Assistant to Prime Minister on Health Dr Faisal Sultan said the recent hike in prices of 94 essential lifesaving drugs by the Drug Regulatory Authority of Pakistan (Drap) was inevitable to ensure availability of medicines.

He said a reasonable increase was made in theprices of 94 essential drugs by the Drap. He said pharmaceutical companies usually stopped producing some medicines if their prices did not increase.

“A halt in production by the pharmaceutical companies creates shortage of drugs across the country,” he added. “A hike of 1.5 per cent to 70 per cent was made in the 94 lifesaving drugs while keeping in view its access to the nationals. A new transparent drug pricing policy is being formulated by the federal government that will end all major issues,” said Sultan.

The DRAP has a mechanism to monitoring prices of drugs and the government thoroughly reviewed the reasons before approving the recent hike. He announced that eligible officers would be appointed in institutions related to the Ministry of National Health Services Regulations & Coordination Islamabad (NHSRC).

He said appointments of permanent heads in the institutions continued in the health ministry. Sultan said a legislation was underway for MTI bill and it would be presented in the Parliament soon. He said it was impossible to bring reforms in hospitals without adopting modern procedures.