The Pakistani government plans to cut electricity prices by Rs8–Rs10 per unit. This policy aims to reduce consumer debt as part of a larger attempt to address energy industry circular debt.
Officials disclosed that lowering debt repayments by Rs130 billion frees up funds to slash electricity bills. A major concern for the economy has been power sector financial losses, which this action is expected to minimize.
The administration plans to offer this suggestion to the IMF next month during its review visit. This new plan to slash electricity prices through tax cuts has high prospects after the IMF rejected a previous one.
Due to fuel price fluctuations, most power distribution companies (Discos) cut energy tariffs by Rs2 per unit in January. This adjustment did not affect K-Electric subscribers. Central Power Purchasing Agency Guarantee Limited (CPPA-G) reported decreasing fuel prices as the cause.
January energy came from hydropower, nuclear, RLNG, coal, and renewable sources. This energy mix change decreased expenses, driving the consumer price cut.
NEPRA, Pakistan’s energy regulator, will hold a public hearing to assess the plan and solicit stakeholder input. These initiatives might significantly reduce high electricity prices for many homes nationwide if authorized.
