Cover Story 1 - Spiral Debt

Byline: Ismat Sabir To reduce power sector's annual losses of Rs226 billion, as a first step of reforms, the government dissolved Pakistan Electric Power Company (PEPCO). The power tariff was also raised to 2 percent for all consumers across the board. The total tariff increase would be 17.6 percent up to June 2011. The increase in tariff would be applicable to KESC too. A ministerial steering committee will monitor the reforms process and review progress on a monthly basis to complete the transition in nine months.