ISLAMABAD – The federal government has decided not to extend the Rs7.41 per unit electricity subsidy, which is set to expire next month, according to sources on Wednesday.
The subsidy, introduced as a three-month relief package by Prime Minister Shehbaz Sharif in April 2025, will no longer be available from August. It had offered relief to general consumers as well as a separate concession of Rs7.59 per unit for the industrial sector, announced on April 4 during Eid.
The package included several quarterly and fuel price adjustments:
- In the second quarter (April–June 2025), consumers received Rs1.90 per unit relief.
- In the third quarter (May–July 2025), Rs1.55 per unit was offered.
- Additional relief included Rs1.71 per unit linked to petroleum price adjustments and Rs0.90 per unit under the fuel price adjustment mechanism.
The final Rs1.55 per unit concession for the third quarter will be reflected in electricity bills issued for July.
Sources also mentioned that the fuel cost adjustment for June, which will appear in the July bills, is likely to be negative — potentially offering minimal relief.
Meanwhile, NEPRA has completed hearings on a proposal to increase electricity tariffs by Rs0.10 per unit based on May’s fuel cost adjustment.
