The federal government has submitted a proposal to the National Electric Power Regulatory Authority (Nepra), seeking approval for a Rs 1.71 per unit reduction in electricity tariffs across Pakistan, including K-Electric consumers. If approved, this relief will be applicable from April to June 2025.
Background and Previous Considerations
Initially, there were speculations that the Prime Minister might announce a Rs 8 per unit tariff reduction on March 23, but this plan was put on hold due to concerns raised by the International Monetary Fund (IMF) during discussions on the $7 billion Extended Fund Facility (EFF). Instead, the government opted for a smaller reduction while ensuring compliance with financial commitments.
Funding the Tariff Relief
To accommodate this reduction, the government is considering an increase in tariff differential subsidies. Another possible measure includes raising the petroleum levy on petrol and diesel by Rs 10 per litre, bringing it up to Rs 70 per litre, as allowed under the Finance Act 2025. This move would help generate additional revenue to cover electricity costs.
Next Steps and Implementation
Nepra has scheduled a public hearing on April 4 to review the proposal. If approved, the lower tariffs will be implemented from April 1 to June 30, 2025, offering temporary financial relief to electricity consumers nationwide.
