The National Electric Power Regulatory Authority (NEPRA) held a crucial hearing on Friday to evaluate the government’s proposal for an electricity rate cut in Pakistan by Rs1.71 per unit for all power consumers nationwide. This proposed electricity price reduction would be applicable during the April to June 2025 period. Although NEPRA has not yet announced a final decision, the outcome is expected soon. The proposed cut is a component of a larger relief package unveiled by Prime Minister Shehbaz Sharif, which aims to offer electricity bill relief of Rs7.41 per unit to consumers across the country.
The Rs7.41 per unit reduction includes several elements: Rs1.71 per unit relief from the petroleum levy, Rs1.90 from the second quarter tariff adjustment, Rs1.36 under the monthly fuel price adjustment, and over Re1 per unit from the anticipated third quarter adjustment. When taxes are included, the complete power tariff reduction in Pakistan will provide significant savings to the public.
During the NEPRA hearing, officials from the Power Division emphasized that this electricity relief will be implemented via quarterly tariff adjustments rather than through annual rebasing, which is currently impractical due to prevailing economic challenges in Pakistan. The continuation of this price relief heavily depends on economic stability, according to the officials.
They further stated that approximately Rs58.7 billion is expected to be collected through the petroleum levy in the upcoming three months, which will be redirected to subsidize electricity costs. Additionally, Rs12 billion in relief has been secured through renegotiated deals with five Independent Power Producers (IPPs). So far, revised contracts have been finalized with a total of 32 IPPs, playing a major role in the current price adjustment framework.
Meanwhile, talks with the International Monetary Fund (IMF) are ongoing to address Pakistan’s circular debt crisis in the power sector. The officials assured that once these negotiations are concluded, additional electricity pricing relief may be offered to the public.
