Pakistan acknowledges rising power tariff woes as mosques urge people not to pay bills

Protestors shout slogans against the surge in petrol and electricity prices during a rally along a street in Karachi on August 18, 2023, as Pakistan endures soaring inflation. (AFP/File)
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Updated 27 August 2023
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Pakistan acknowledges rising power tariff woes as mosques urge people not to pay bills

  • Caretaker PM has called an emergency meeting today to address the issue of rising electricity cost
  • Pakistan raised the power tariffs in July to meet an IMF requirement after $3 billion bailout approval

ISLAMABAD: Pakistan’s caretaker information minister Murtaza Solangi said on Saturday the government was aware of the challenges faced by citizens due to escalating electricity costs, as the prime minister called an emergency meeting on Sunday to address the issue amid announcements urging non-payment of utility bills from mosques in the country.

Solangi issued the statement during a joint media briefing in Islamabad with the federal secretary of the power division to articulate the government’s stance over the current state of electricity tariffs.

The media interaction followed protests by Pakistani trade associations and citizens in various urban centers following the National Electric Power Regulatory Authority’s (NEPRA) implementation of a tariff hike of Rs4.96 per unit in July.

The government has also increased the prices of petroleum products substantially twice in the ongoing month, raising the overall cost of living in the country further amid mounting inflationary pressure.

“Caretaker information minister Murtaza Solangi has acknowledged the challenges faced by the people due to rising prices of electricity,” reported the state-owned Pakistan Television news channel. “All stakeholders have been invited to attend the meeting chaired by the prime minister [to discuss the issue].”

 

 

Earlier, Pakistan’s interim PM Anwaar-ul-Haq Kakar said he had summoned an urgent meeting focusing on mounting cost of electricity on Sunday.

“In the meeting, a briefing will be sought from the ministry of power and distribution companies and consultations will be held to give maximum relief to consumers regarding their electricity bills,” he added.

Meanwhile, video clips from Pakistani cities of Mansehra and Wazirabad went viral on the social media, showing announcements from mosques in which people were urged not to pay their electricity bills to register protest.

 

 

All these developments have come after trade associations in Karachi, Islamabad and Peshawar issued warnings of potential “consequences” if the government did not bring down the power tariffs.

NEPRA’s decision to increase the electricity rate followed a requirement imposed by the International Monetary Fund (IMF) for the approval to a $3 billion bailout package amid major financial challenges facing Pakistan.


Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

Updated 25 December 2025
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Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure

  • Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
  • Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone

KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.

The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said. 

The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim. 

“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said. 

Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.

The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs. 

Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said. 

“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said. 

The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital. 

To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.