Prime Minister Shehbaz Sharif is set to announce a reduction in electricity prices by Rs8 per unit, pending approval from the International Monetary Fund (IMF), according to a report by Daily Pakistan on Wednesday.
The relief is expected to be officially announced on March 23, with the new rates taking effect from April 1, 2025. Consumers will receive electricity bills reflecting the revised tariffs starting in May.
Of the Rs8 per unit reduction, Rs4.73 per unit is expected to be a permanent decrease. The cost-cutting measures enabling this reduction include the termination of contracts with six Independent Power Producers (IPPs), transitioning 16 IPPs to a “take and pay” model, pegging bagasse power plants to the Pakistani rupee instead of the US dollar, capping the return on equity for state-owned power plants at 13% in local currency, and fixing the US dollar exchange rate at Rs168.
Government officials have also indicated that savings from maintaining current petroleum prices since March 16 will be used to further reduce electricity costs by Rs1.30 per unit.
The IMF has reportedly permitted the Pakistani government to allocate Rs250 billion in relief, generated from stabilizing petrol prices over three months, to lower electricity tariffs—provided that international petroleum prices continue to decline.
