Pakistan Government Requests Electricity Tariff Cut to Ease Consumer Burden

The Pakistan federal government has formally requested a reduction in electricity tariffs, proposing a cut of Rs. 1.71 per unit. The request was submitted to the National Electric Power Regulatory Authority (NEPRA), with the aim of providing financial relief to consumers.

The proposed tariff reduction will be made possible through a tariff subsidy, according to details outlined by the government. NEPRA is scheduled to hold a hearing on the matter on April 4, 2025, to review and decide on the request. If approved, the tariff cut will apply to all distribution companies, including K-Electric, ensuring nationwide benefits for electricity consumers.

The government has requested that the subsidy be in effect from April to June 2025, offering relief during the upcoming summer months, when electricity consumption typically rises.

This move follows recent updates from the International Monetary Fund (IMF), which announced that a staff-level agreement with Pakistan had been reached to unlock a $1.3 billion loan tranche. The IMF also indicated that the electricity tariff relief for consumers in Pakistan was part of the broader economic support package aimed at stabilizing the country’s financial situation.

The tariff reduction is expected to provide significant relief to households and businesses, especially as inflation and energy costs have been rising in recent months. The government’s initiative reflects its ongoing efforts to alleviate the economic strain on consumers while managing the financial obligations associated with international loans.