Pakistani PM vows stern action against ‘electricity thieves’ amid protests over high power bills

A man burns an electricity bill during a protest against the surge in prices of electricity and fuel in Karachi, Pakistan, on September 1, 2023. (Photo courtesy: AFP)
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Updated 04 September 2023
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Pakistani PM vows stern action against ‘electricity thieves’ amid protests over high power bills

  • Angry citizens took to the streets in many parts of the country last week over steep power bills
  • Caretaker Prime Minister Kakar chairs meeting in Islamabad over Pakistan’s power sector 

ISLAMABAD: Caretaker Prime Minister Anwaar-ul-Haq Kakar on Monday vowed to take stern action against “electricity thieves” as his government grapples with protests in various parts of Pakistan over high power bills. 

Angry citizens took to the streets in various parts of the country over the past week against the government’s move to hike the power tariff in July. On Saturday, shops and markets remained closed in Lahore, Karachi, Peshawar, and other cities as angry citizens held protest demonstrations and torched their electricity bills in defiance. 

The developments come months after Islamabad signed a crucial $3 billion deal with the International Monetary Fund (IMF) to avert a default due to decades of mismanagement and instability. A Rs7 increase in basic tariff was approved in July to be levied from September, while in August, the National Electric Power Regulatory Authority approved a further hike of Rs4.96 per unit, whose notification has been delayed due to ongoing protests.

PM Kakar has repeatedly said his government is working on a solution to provide relief to masses burdened by steep power bills and already reeling under skyrocketing inflation. 

“Caretaker Prime Minister Anwaar-ul-Haq Kakar says the government will take stern action against electricity thieves,” the state-run Radio Pakistan said in a report. 




Pakistan Caretaker Prime Minister Anwaar-ul-Haq Kakar (center) chairs a meeting regarding the power sector in Islamabad, Pakistan, on September 4, 2023. (Photo courtesy: PID)

The report said the prime minister was presiding over a meeting in Islamabad where he was given a detailed briefing of the power sector. 

“During the meeting, the Prime Minister was briefed over the overall electricity generating potential, installed capacity, actual generation, and power distribution in different weathers,” Radio Pakistan added. 

While speaking to journalists on August 31, Kakar reiterated that Pakistan would not deviate from the agreements it had signed with international financial institutions. 

“In a free market, obviously we have conditionalities [imposed on us], we have agreements with multi-financial institutions that we have to fulfill at any cost,” Kakar said. “Neither is anyone thinking of defying them nor will we allow them to. We are very much clear on that.”

The protests come at a time when Pakistan’s economy is in a tailspin, as its currency depreciates against the US dollar while the country’s stock exchange shed over 1,200 points last Thursday. 


Pakistan cuts key rate by 50 bps to 10.5% in surprise move after holding for four meetings

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Pakistan cuts key rate by 50 bps to 10.5% in surprise move after holding for four meetings

  • An IMF staff report last week warned against premature easing, with analysts expecting SBP to hold the policy rate
  • Inflation remains within the bank’s target band, but analysts expect price pressures to rise later in the fiscal year

KARACHI: Pakistan’s central bank cut its key interest rate by 50 basis points to 10.5 percent on Monday, the bank said on its website, breaking a hold on the rate for four meetings in a move that surprised analysts and came despite IMF warnings to avoid premature easing.

All 12 analysts in a Reuters poll had expected the State Bank of Pakistan (SBP) to hold the policy rate at 11 percent.

Monday’s reduction takes the total easing since rates peaked at 22 percent to 1,150 basis points, after the SBP delivered 1,100 bps of cuts between June 2024 and May 2025 and then held the rate steady for four meetings before Monday’s move.

Inflation edged down to 6.1 percent in November from 6.2 percent in October, within the SBP’s 5 percent–7 percent target band, with analysts expecting it to rise again later in FY26 as base effects fade and food and transport prices stay volatile.

An IMF staff report last week warned against premature easing, calling for policy to remain data-dependent to anchor expectations and rebuild external buffers, even as Pakistan received a $1.2 billion disbursement under its loan program.