Pakistanis struggle to keep the lights on amid record electricity bills, sky-high inflation

Muhammad Amir Khan, a driver with a private company, holds his electricity bill of Rs28,457 ($95.99) on September 18, 2023, in Karachi, Pakistan. (AN Photo)
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Updated 19 September 2023
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Pakistanis struggle to keep the lights on amid record electricity bills, sky-high inflation

  • Pakistan saw nationwide protests and strikes all of August over rising electricity prices and brisk inflation
  • Pakistan hiked power tariffs in July under IMF deal to reduce unsustainable public debt in power and gas sectors

KARACHI: Muhammad Amir Khan, a driver with a private company, has been in despair since last month when he received an electricity bill of Rs28,457 ($95.99).

With a monthly salary of Rs27,000 ($91.7) — his only source of income to support a seven-member household — Khan had no option but to default on paying the bill.

Now he waits for the inevitable: the power supply company to turn the lights off.

Khan is not alone.

Pakistan saw nationwide protests and trader strikes all of August over rising electricity prices and brisk inflation, as citizens and businessmen came out to burn electricity bills in a show of defiance and despondency. A $3 billion loan program, approved by the International Monetary Fund (IMF) in July, averted a sovereign debt default in Pakistan but reforms linked to the bailout have fueled annual inflation running at 27.4 percent.

Pakistan increased its power tariffs in July under the IMF deal, part of moves to reduce unsustainable public debt in the power and gas sectors. Tens of thousands of Pakistanis thus received steep electricity bills during August for power units consumed in July. To make matters worse, Pakistan last Friday also announced a record rise in petrol and diesel prices, the second big increase in two weeks.

“My electricity bill [last month] was so high that I could not pay it, because do I pay the bill or buy food or provide for my children?” Khan told Arab News.




Muhammad Amir Khan, a driver with a private company, holds his electricity bill of Rs28,457 ($95.99) on September 18, 2023, in Karachi, Pakistan. (AN Photo)

“And in case of non-payment of the bill, if my electricity is disconnected then I will be forced to live in the darkness because I don’t have any other resources.”

“How can I carry on with an income that is less than the electricity bill I’ve been handed?”

Inflationary pressures are hitting the masses hard. August data from Pakistan’s statistics bureau showed a slight easing from July’s 28.3 percent inflation rate, but food inflation remained elevated at 38.5 percent.

Financial expert Ali Nawaz said low-income groups across the country were unable to make ends meet as food inflation and record power bills had increased their cost of living significantly.

“Higher electricity bills have reduced their disposable income to a very large extent, which has been impacting their livelihood,” Ali said. “They are unable to fund their daily living, they are unable to fund their health care expenditure, they are unable to fund their food-related expenses.”

“We should focus on reducing electricity prices as soon as possible by focusing more on alternative energy sources so we can give some relaxation to the common people,” Ali added.

But what is driving electricity prices in Pakistan?

One is the cost of non-renewable fuel resources such as gas, furnace oil, diesel and coal while the other is the rising value of the US dollar and the depreciating rupee.

Energy purchases account for most of Pakistan’s import bill. As the rupee withers against the dollar, imported fuel has become costlier.

The IMF deal-mandated hike in electricity prices has not helped.

The lender had pointed out that liquidity conditions in the power sector were acute, with a buildup of arrears and frequent power outages. The arrears — a form of public debt that builds up due to subsidies and unpaid bills — were a major issue in the eight months of negotiations between the IMF and Islamabad before a deal was reached in June.




An activist of Pakistan's right wing religious party Jamaat-e-Islami holds a placard reading, "withdraw the additional electricity bills and the government should end the patronage of IPPs contracts" during a demonstration against the surge in electricity prices in Peshawar on September 18, 2023. (AFP/File)

Debts to power generation companies have accumulated to nearly 2.6 trillion rupees ($9.04 billion), according to official figures, which show a separate government debt of around 1.6 trillion rupees ($5.56 billion) to the gas sector. The power sector is also beset by theft, which needs to be overcome.

With the recent tariff hikes, the per unit price of electricity has gone up to Rs35.57 for off-peak electricity hours and Rs41.89 for on-peak hours. Previously, the rates were Rs19.66 for off=peak hours and Rs25.98 for on-peak times. The per unit rates, with the addition of various taxes, have increased to Rs53-63 for different consumer categories. 

Another reason for the high cost of electricity is “capacity payments” to Independent Power Producers (IPPs), private entities that own facilities to generate electric power for sale to end users. Pakistan’s energy mix consists of 58.8 percent thermal power, which means the country is heavily dependent on IPPs. But contracts entered into with the independent producers are widely believed to be skewed in favor of the companies.

Among major criticisms of IPP contracts is that they require the government to make capacity payments even when power generated is not fully utilized. Experts say the arrangement leads to a high cost of electricity which augments the production costs of factories and industrial units. IPPs have also been accused of making exorbitant profits and dividends on capital invested under existing contracts and of over-invoicing and misreporting, while experts and politicians have called for a heat rate audit.

Representatives from the Power Division told Senate last month capacity payments to IPPs for the current fiscal year had reached a staggering Rs1.3 trillion.

In a briefing to journalists earlier this month, caretaker Prime Minister Anwaar-ul-Haq Kakar admitted problems with IPP agreements and said his government was “thoroughly” discussing its contractual obligations with the producers.

“We are on a course where we feel that we should find some sort of resolution, as everyone feels that they are uneven contracts,” the PM said, adding that he would share more details in due course of time.


Imran Khan’s party says 90-day ‘do or die’ anti-Pakistan government movement underway

Updated 7 sec ago
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Imran Khan’s party says 90-day ‘do or die’ anti-Pakistan government movement underway

  • Khan’s party earlier this month announced its plan to launch nationwide anti-government movement after Muharram
  • Ali Amin Gandapur, KP chief minister and a close Imran Khan aide, says movement to “reach its peak” on August 5

ISLAMABAD: Former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party announced on Sunday that its 90-day “do or die” protest movement against the government is underway, saying that it would determine the future of the party. 

Earlier this month, the PTI announced it would launch a nationwide protest movement after the Islamic month of Muharram, following a ruling by Pakistan’s top court denying the party reserved parliamentary seats for minorities and women.

Tensions further escalated days earlier when 26 PTI provincial lawmakers were suspended by the speaker of the Punjab Assembly for 15 sessions, after they protested during Chief Minister Maryam Nawaz Sharif’s speech on June 27.

Gandapur arrived in the eastern city of Lahore from KP on Saturday to discuss the party’s political strategy and finalize its protest movement against the government.

“We have announced a 90-day protest movement, which began yesterday [Saturday] and it will be a do-or-die movement for us, whether we remain there [in KP government] or not, ” Gandapur, flanked by the PTI’s leadership, told reporters at a news conference in Lahore.
 
The KP chief minister vowed that the party’s anti-government protest movement will “reach its peak” on August 5, marking two years since Khan was arrested after being convicted by a court for illegally selling state gifts. 

‘REAL DECISION-MAKERS’ 

Khan, who has remained in prison since then, says the charges against him are politically motivated and has denied wrongdoing. His party has held various protests demanding his release and an independent investigation into the elections of February 2024. In one of the PTI’s protests in November last year, the government said four troops were killed in clashes with Khan supporters. The PTI rejects this allegation. 

Gandapur alleged that the PTI was being denied its right to hold peaceful protests across the country, vowing that it would now mobilize people across the country.

“We will announce a plan accordingly, after taking all our local workers and leaders into confidence on how to proceed with this movement,” the chief minister said. 

On holding talks with the government, Gandapur said his government was ready to hold talks but with the “real decision-makers,” indirectly referring to the military. 

“They [military establishment] are the real decision-makers, so we will talk to them only as there is no point in talking to those [the government] who have no power to make any decisions,” Gandapur said. 

Arab News reached out to federal ministers and senior leaders of the ruling Pakistan Muslim League-Nawaz (PML-N) party for a response, but did not receive one till the filing of this report.

Pakistan’s military says it does not interfere in political issues and rejects the PTI’s allegations that it conspired with Khan’s political opponents to oust his government in a parliamentary vote in April 2022. 

Pakistan’s government has denied the PTI’s allegations of stifling dissent and says the elections of February 2024 were transparent. It accuses the former prime minister and his party of attempting to disrupt the government’s efforts to achieve sustainable economic growth via violent protests.


Pakistan says atrocities in Palestine, Serbia must not go ‘unnoticed’

Updated 13 July 2025
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Pakistan says atrocities in Palestine, Serbia must not go ‘unnoticed’

  • State minister for overseas Pakistanis participates in memorial service for victims of 1995 Srebenica massacre
  • Aun Chaudhry expresses solidarity with oppressed communities in Palestine and Kashmir, reports state media

ISLAMABAD: Pakistan’s State Minister for Overseas Pakistanis Aun Chaudhry reaffirmed Islamabad’s commitment to protecting human rights globally, urging the world not to let atrocities in Palestine, Serbia and Kashmir go “unnoticed,” state-run media reported on Sunday.

Chaudhry was in Potočari, Bosnia, where he took part in a solemn memorial service in remembrance of the 30th anniversary of the 1995 killings in Srebenica. According to the UN, the Bosnian Serb army overran Srebrenica in July 1995, previously declared a safe area under a UN Security Council resolution, and brutally murdered thousands of men and teenagers there.

Chaudhry laid a floral wreath at the memorial site, paying tribute to those who were massacred in the event 30 years ago. He also spoke about the rights of the people of Gaza, where Israel has killed at least 57,882 Palestinians since the start of the war in 2023, according to the health ministry there. 

“Aun Chaudhary stressed that atrocities whether in Serbia, Palestine, Kashmir or anywhere else in the world must not go unnoticed,” state broadcaster Radio Pakistan reported. 

He reaffirmed Pakistan’s unwavering commitment to the protection of human rights globally, expressing solidarity with oppressed communities in Palestine and Kashmir, the state broadcaster said.

Pakistan, which does not have diplomatic ties with Israel, has consistently criticized Tel Aviv and called on world powers to intervene for an immediate ceasefire in Gaza.

Islamabad has repeatedly demanded an independent Palestinian state, with Al Quds Al Sharif as its capital and as per the pre-June 1967 border.


Pakistan’s Nadeem, India’s Chopra to reignite javelin rivalry in Poland in August

Updated 16 min 17 sec ago
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Pakistan’s Nadeem, India’s Chopra to reignite javelin rivalry in Poland in August

  • Arshad Nadeem and Neeraj Chopra to face off in Wanda Diamond League 2025 competition in Silesia in August
  • Two last faced each other in August 2024 at Paris Olympics where Nadeem won gold with 92.97-meter throw5

ISLAMABAD: Pakistan’s javelin star Arshad Nadeem and India’s Neeraj Chopra will reignite their rivalry in August when the two sportsmen compete at the Silesia Wanda Diamond League 2025 competition scheduled to be held in Poland, the official website of the Olympics said this week. 

This will be the first time Nadeem and Chopra will face each other since their charged encounter at the Paris 2024 Olympic final, where Nadeem clinched gold ahead of Neeraj with an Olympic record-shattering throw of 92.97 meters. 

The Wanda Diamond League is an annual sports competition featuring elite athletes across sprints, jumps, throws and distance events. The competition is set to take place next month in Silesia on August 16. 

“Neeraj Chopra will face Arshad Nadeem,” the Olympics website said, quoting the Diamond League organizers.

“The Indian-Pakistani battle awaiting the Polish fans will be the first opportunity for revenge after the Paris Olympics.”

Chopra has had an impressive year so far, kicking off his season with a win at the Potch Invitational in South Africa before finishing second at the Doha Diamond League, where he breached the coveted 90-meter barrier with a massive 90.23m throw — a new national record. 

The Indian athlete then had to settle for a second-place finish again at the Janusz Kusocinski Memorial in Poland but returned to winning ways at the Paris Diamond League. Since then, he has logged back-to-back wins at the Ostrova Golden Spike in Czechia and the NC Classic in India.

Nadeem, meanwhile, recently marked a triumphant return to action by winning gold at the Asian Athletics Championships in Gumi, Korea. He hadn’t competed since his Paris 2024 exploits.

Rivalries, particularly between athletes or teams from bitter rivals India and Pakistan, have always been one of the most intriguing aspects of sports. 

However, next month’s competition will have added flair to it, considering the militaries of the two countries engaged in the worst fighting between them in decades in May.

An attack in Indian-administered Kashmir triggered a conflict between the two states that saw them target each other with missiles, drones, fighter jets and artillery fire before agreeing to a ceasefire on May 10.


Pakistan’s death toll from heavy rains since June 26 surges past 100

Updated 13 July 2025
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Pakistan’s death toll from heavy rains since June 26 surges past 100

  • Punjab reports highest number of rain-related deaths, 39, followed by Khyber Pakhtunkhwa with 31
  • Pakistan has warned of flash flood risks in Punjab, KP and Balochistan provinces from July 12-17

ISLAMABAD: The death toll from heavy rains and flash floods in Pakistan since June 26 has climbed to 104, the National Disaster Management Authority (NDMA) said in its latest report this week, as the country braces for more monsoon downpours and possible floods. 

As per the NDMA’s latest situation report, Punjab has reported the highest number of deaths from rain-related incidents, 39, followed by Khyber Pakhtunkhwa (KP) with 31, Sindh with 17, Balochistan with 16, while Azad Kashmir also reported one death since June 26. 

“The total number of 104 deceased include 49 children, 37 men and 18 women,” the NDMA report said, adding that 200 people were injured, among them 76 children, 78 men and 46 women.

The report further said 413 houses have been damaged since June 26 due to rain-related incidents across the country, with the most houses damaged in KP, 146, Sindh 86, Punjab 54, Balochistan 52, Azad Kashmir 45 and 30 in Gilgit-Baltistan. 

Sindh reported the highest number of livestock that perished due to rains, 58, followed by KP with 43, Punjab with seven and Azad Kashmir with three. 

The NDMA, meanwhile, issued a fresh alert for heavy rains on Saturday. It warned of potential flood and flash flood risks in various regions of Punjab, KP and Balochistan provinces from July 12 to July 17 in its latest advisory. 

The authority advised administrations to ensure the readiness of emergency teams, the availability of machinery and ensure clearance of drainage systems.

It also called on tourists to avoid high-altitude areas, saying that residents in vulnerable zones must secure valuables, vehicles and livestock, and keep essential supplies. 

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change. In 2022, record-breaking monsoon rains and glacier melt triggered catastrophic floods that affected 33 million people and killed more than 1,700.


Pakistan vows political, diplomatic support for Kashmiris on Kashmir Martyrs’ Day

Updated 13 July 2025
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Pakistan vows political, diplomatic support for Kashmiris on Kashmir Martyrs’ Day

  • Pakistan observes Kashmir Martyrs’ Day on July 13 to honor 22 Kashmiris killed in 1931 by then ruler of disputed territory
  • Nuclear-armed India and Pakistan have both fought three wars since 1947, with two of them over disputed Kashmir

ISLAMABAD: Prime Minister Shehbaz Sharif on Sunday vowed to extend Pakistan’s diplomatic and political support to the people of Kashmir on Kashmir Martyrs’ Day, calling for the resolution of the dispute as per the United Nations Security Council resolutions, state-run media reported. 

Pakistan marks Kashmir Martyrs’ Day on July 13 every year to pay tribute to 22 Kashmiri protesters who were shot dead in Srinagar, the capital of Indian-administered Kashmir, in 1931 by soldiers of Maharaja Hari Singh, the Hindu ruler of the then princely state.

Pakistan sees the day as a symbol of Kashmiris’ struggle against what it says is illegal Indian occupation in the disputed Himalayan valley. Both India and Pakistan have fought three wars since 1947, with two of them over Kashmir. Both claim territory in full but administer only parts of it.

“The Kashmiri people have been and are sacrificing their lives in their legitimate struggle for the right to self-determination,” Sharif was quoted as saying by the Associated Press of Pakistan (APP).

“The government of Pakistan expresses its political, diplomatic and moral support in solidarity with the Muslims of Jammu and Kashmir, which is illegally occupied by India.”

Every year on the occasion, special rallies, seminars, and conferences are held across Pakistan and Azad Kashmir to express solidarity with the people of Kashmir. 

India accuses Pakistan of backing separatist militants in the part of Kashmir it administers. Islamabad denies the allegations and says it only extends political and diplomatic support to Kashmiris. 

The two countries engaged in the worst fighting between them in decades in May when gunmen shot dead 26 people, mostly tourists, in Indian-administered Kashmir. India blamed Pakistan for supporting the attack, which Pakistan strongly denied and called for an international probe into the incident. 

The two countries engaged in a military conflict for four days that killed over 70 people on both sides of the border before US President Donald Trump announced a ceasefire between Delhi and Islamabad on May 10.