PRIME Minister Yousaf Raza Gilani has confirmed that there will be a six-percent increase in the electricity tariff come April. This comes on top of the 12.5 percent increase made between July and January this year, made under the agreement with the IMF. Apart from the IMF agreement, the power sector had been awarded an increase in the fuel adjustment head by the National Electric Power Authority even though international oil prices were falling. The price increase is scheduled to take place at a time when loadshedding is set to increase with the advent of the hot weather, with the concomitant increase in the use of fans and other cooling devices. This makes it a singularly inappropriate time, apart from being unjustified. Though the Prime Minister was pretty casual about the price-hike, he should realise that it means more of the harmful effects that these increases bring. These include a general increase in price levels, which is particularly harmful as the last price increases were blamed on this, in a report on the general increase in inflation based on the CPI measure. This general increase results from increased costs of production. This problem is particularly marked in the export industries, which are already priced out of international markets by the cost of power, as well as of capital inflows, because of a swollen interest rate. Thus, the latest increase may well be enough to depress local consumption, not just exports, at a time when industry is faltering. The IMF does not wish Pakistan well. Its loan to Pakistan, for which it attaches onerous preconditions, is based on its continued cooperation in the USAs War on Terror, not sound economics. Therefore, its prescriptions are not a solution, but meant to keep Pakistan in a subordinate position, and to ensure obedience. Hence, the government must abandon the IMF programme even if it means changing its present policy of obeying the USA in whatever demands it sees fit to make in its unjust War.