In a late-night decision, the federal cabinet in Pakistan approved a significant increase in electricity prices to meet the conditions set by the International Monetary Fund (IMF). The increase in the base electricity tariff will affect different categories of consumers.
For residential consumers using 1 to 100 units, the per unit cost will be raised from Rs 13.48 to Rs 16.48. Meanwhile, residential consumers using above 700 units will face a higher cost of Rs 42.72 per unit, up from the previous Rs 35.22.
The government’s decision to raise the electricity tariff was based on a recommendation from the National Electric Power Regulatory Authority (Nepra). The matter has been sent to Nepra for approval, and the regulator will conduct a public hearing before issuing the final notification.
If approved, the new electricity tariff will take effect from July 1. This move comes after the IMF approved a $3 billion loan for Pakistan, and the government is committed to meeting the conditions of the agreement with the global lender.
The aim of increasing the electricity prices is to address the economic challenges faced by the country and fulfill its commitments to the IMF. However, this decision may have an impact on consumers and will be subject to public review before implementation.
