ISLAMABAD, April 20: The government has decided not to increase tariff for consumers of the Water and Power Development Authority at least until June 30 to keep a check on inflation and maintain the momentum of economic growth, it is learnt.

The decision was taken on Thursday at a meeting presided over by Prime Minister Shaukat Aziz and attended by the power minister and secretary, chairmen of the National Electric Power Regulatory Authority (Nepra) and Wapda and officials of finance ministry.

Sources told Dawn that the meeting reviewed the financial situation of the Wapda companies, the expected impact of separate tariffs of distribution companies and budgetary allocation for power sector subsidies.

The sources said the meeting was informed that over Rs55 billion had been allocated for subsidies, including Rs21 billion for differential tariff of the distribution companies.

The power ministry was of the opinion that the tariff should not be increased at this stage because a review of power tariff would anyway be due in July and a revision in the mid of a quarter would not be welcomed, particularly by commercial and industrial consumers.

The sources said that although the power purchase price of Wapda had increased during the year, the continuation of existing tariff for the two months would not disturb the budgetary target for subsidies.

However, various heads of subsidies might need to be swapped to remain within budgetary targets, they said. The finance ministry was asked to take care of the issue, the sources said.

When asked if the lending agencies, particularly the World Bank, had been taken into confidence, an official said the government could either please the lenders or the consumers as the election year neared.

Another official said the World Bank had not pressed for the separation of power tariff of distribution companies during the past few months.

The bank had earlier linked disbursement of $350 million structural credit to completion of separate tariffs of Wapda companies.