Prime Minister Shehbaz Sharif will announce an Rs8 per unit cut in electricity tariffs effective April 1, 2025. This reduction follows approval from the International Monetary Fund (IMF) and will appear on consumer bills in May. The move aims to provide much-needed relief to consumers.
Out of the total Rs8 decrease, Rs4.73 will be a permanent reduction. This will come from renegotiating contracts with six Independent Power Producers (IPPs) and revising power purchase agreements for sixteen IPPs. Additionally, adjustments will also include delinking bagasse power plants from the US dollar to the Pakistani rupee.
The government’s decision not to lower petroleum prices, despite their international drop, will factor into the tariff reduction. This decision is expected to offer Rs168 billion in savings, resulting in a temporary cut of Rs1.30 per unit for one month. If international oil prices decrease further, the budget relief could amount to Rs250 billion.
Moreover, officials are exploring further measures to reduce tariffs by an additional Rs2 per unit. The final details will be released on March 23. While the government will not eliminate the Electricity Duty, it plans to remove the Rs35 fee for Pakistan Television (PTV) from bills starting July 2025.
