Technicians work to clean the electricity transmission tower in Karachi, Pakistan December 7, 2018. REUTERS/Akhtar Soomro

Join now for FREE unlimited access to Reuters.com

Register

KARACHI, Pakistan, July 26 (Reuters) – Pakistan on Tuesday raised electricity prices to match rising production costs amid a global energy crisis and heatwave, even as the country grapples with its highest inflation in more than a decade, the energy minister said.

Last month, inflation hit 21.3%, mainly due to rising food prices, and the country is also facing a rapid depletion of foreign exchange reserves, currency depreciation and a growing current account deficit.

“Cabinet has approved an increase in electricity tariffs, but vital (poor) consumers will not be affected,” Energy Minister Khurram Dastagir Khan told reporters in Islamabad, adding that the increase will not be affected. would not apply to them.

Join now for FREE unlimited access to Reuters.com

Register

Pakistan’s monthly fuel oil imports are set to hit a four-year high in June, Refinitiv data shows, as the country struggles to buy liquefied natural gas for power generation amid a spurring heat wave Requirement.

Rising energy imports have hit the economy as the country struggles to boost currencies. The rupee has lost 20% of its value in 2022. Reserves have fallen to $9.3 billion, barely enough to pay for 45 days of imports.

Pakistan this month reached a staff-level agreement with the IMF for $1.17 billion in critical financing as part of a resumed bailout.

The country is also pushing to exploit other avenues of power. The minister said nuclear energy production increased after a plant was refueled.

Since early July, the K2 plant has been operating at full capacity.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Syed Raza Hassan; Editing by Nick Macfie

Our standards: The Thomson Reuters Trust Principles.