Govt notifies Rs7.12 per unit national tariff increase

Pakistan Federal Government Announces Steep Hike in Electricity Tariffs,

Islamabad(Staff Reporter);Govt notifies Rs7.12 per unit national tariff increase,  The federal government has issued a notification confirming a significant increase in basic electricity tariffs across the country, including Karachi.

The hike amounts to Rs7.12 per unit, effective immediately. However, domestic consumers using up to 200 units per month will be exempt from the tariff hike for the next three months (July-September 2024). This exemption is part of Prime Minister Shehbaz Sharif’s announcement to provide relief to low-income households.

New Tariff Rates

– Up to 200 units/month: No change (exempt from hike)
– 201-300 units/month: Rs34.26 per unit (increased by Rs7.02)
– 301-400 units/month: Rs39.15 per unit (increased by Rs7.02)
– 401-500 units/month: Rs41.36 per unit (increased by Rs6.12)
– 501-600 units/month: Rs42.78 per unit (increased by Rs6.12)
– 601-700 units/month: Rs43.92 per unit (increased by Rs6.12)
– Above 700 units/month: Rs48.84 per unit (increased by Rs6.12)

Lifeline Consumers,

The tariff for lifeline consumers (up to 50 units/month) remains unchanged at Rs3.95 per unit.

Subsidy Allocation,

The federal government has allocated a subsidy of Rs50 billion to offset the tariff reduction for low-income households.

This significant hike in electricity tariffs is expected to have a substantial impact on domestic consumers, with many likely to feel the pinch of increased electricity costs.

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It is pertinent to note that a new staff-level loan agreement has been reached between Pakistan and the International Monetary Fund (IMF) under which the country will receive $7 billion over 37 months. The final approval of the loan will be given by the IMF Executive Board.

In a statement issued by IMF’s Mission Chief to Pakistan Nathan Porter, “The Pakistani authorities and the IMF team have reached a staff-level agreement on a comprehensive program endorsed by the federal and provincial governments, that could be supported by a 37-month Extended Fund Arrangement (EFF) in the amount equivalent to SDR 5,320 million (or about US$7 billion at current exchange rates).”