Pakistan Government Set to Announce Major Electricity Tariff Cuts
Pakistan to Cut Electricity Tariffs by Rs 9-10 per Unit Starting April 2025
ISLAMABAD: The Pakistani government is preparing to announce significant reductions in electricity tariffs, aimed at offering relief to consumers across the country. Power Distribution Companies (Discos) have filed petitions seeking a Rs52.123 billion negative adjustment (about Rs 2 per unit) for the second quarter of FY 2024-25 under the Quarterly Tariff Adjustment (QTA) mechanism.
If approved, these adjustments could lower electricity prices for millions of consumers starting in March 2025. A public hearing by the National Electric Power Regulatory Authority (Nepra) is scheduled for February 12, 2025, to discuss the petitions.
The proposed reductions are primarily due to favorable changes in exchange rates and a decrease in interest rates. Additionally, Prime Minister Shehbaz Sharif is expected to announce an extra Rs7 per unit cut, particularly for the industrial sector, effective in April 2025. This would result in a total reduction of Rs 9-10 per unit starting in April.
Officials note that renegotiating power purchase agreements with Independent Power Producers (IPPs) is expected to generate annual savings of Rs137 billion, helping the government achieve its broader goal of cutting energy costs by Rs1.14 trillion.
Read More: Ambulance Plane Crashes in the US, 7 Killed and Several Injured
The Federal Cabinet has already approved new contracts aimed at securing these savings, marking a key step in reducing the financial burden on consumers and improving the country’s energy sector.
