Pakistan’s power regulator raises electricity rates citing fuel cost adjustments

A girl uses a traditional hand fan while sitting in a train at the railway station on a hot summer day in Lahore on May 30, 2024, amid the ongoing heatwave. (AFP/File)
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Updated 07 June 2024
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Pakistan’s power regulator raises electricity rates citing fuel cost adjustments

  • Rs3.33 per unit hike is expected to allow ex-WAPDA electricity distribution companies to raise $101.4 million
  • Electricity consumers in Karachi will pay an additional Rs2.68 per unit for power consumption in April 2024

KARACHI: Pakistan’s National Electric Power Regulatory Authority (NEPRA) has increased tariff for ex-WAPDA distribution companies (XWDISCOs) and Karachi Electric for the month of June after making fuel cost adjustment, according to a notification issued on Thursday.

The ex-WAPDA distribution companies in Pakistan are entities that were part of the Water and Power Development Authority (WAPDA) before the power sector was restructured over a decade ago, leading to the unbundling of WAPDA’s power distribution functions.

The reforms resulted in the creation of several independent distribution companies (DISCOs), each responsible for providing electricity to specific geographical regions of Pakistan. While these companies operate independently, they are still regulated by NEPRA that notified a Rs3.33 per unit hike for them which would reflect in June 2024 bills.

The move is expected to help them to raise about Rs29 billion ($101.4 million) of additional revenue this month.

“The authority… has reviewed and assessed a National Average Uniform increase of Rs3.332 1/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of April 2024,” said the NEPRA notification.

“The above adjustment of Rs3.3321/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers,” it added.

Apart from these companies, the power consumers in Karachi will pay an additional Rs2.68 per unit in June, raising the tariff to Rs10.1 per unit. The tariff will further increase to Rs3.11 per unit in July which would ease to Rs0.998 per unit in September 2024 under monthly fuel cost adjustment charges, according to the notification.

Pakistan produces expensive electricity due to a combination of factors including high reliance on imported fossil fuels, inefficient energy mix, substantial transmission and distribution losses and chronic issues like circular debt and regulatory inefficiencies.

The outdated infrastructure and inefficient power plants further exacerbate costs, while underutilization of domestic resources such as hydropower and coal add to the problem.

Additionally, fluctuations in foreign exchange rates and complex tariff structures contribute to higher electricity prices.

High power cost is one of the key factors that leads to spiraling inflation.\

According to the Pakistan Bureau of Statistics, the electricity charges had increased by 58.8 percent until May this year.


Return of millions of Afghans from Pakistan and Iran pushes Afghanistan to the brink, UN warns

Updated 14 February 2026
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Return of millions of Afghans from Pakistan and Iran pushes Afghanistan to the brink, UN warns

  • Afghan authorities provide care packages for those returning that include food aid, cash, a telephone SIM card and transportation
  • But the returns have strained resources in a country struggling with a weak economy, severe drought and two devastating earthquakes

GENEVA: The return of millions of Afghans from neighboring Pakistan and Iran is pushing Afghanistan to the brink, the U.N. refugee agency said on Friday, describing an unprecedented scale of returns.

A total of 5.4 million people have returned to Afghanistan since October 2023, mostly from the two neighboring countries, UNHCR’s Afghanistan representative Arafat Jamal said, speaking to a U.N. briefing in Geneva via video link from Kabul, the Afghan capital.

“This is massive, and the speed and scale of these returns has pushed Afghanistan nearly to the brink,” Jamal said.

Pakistan launched a sweeping crackdown in Oct. 2023 to expel migrants without documents, urging those in the country to leave of their own accord to avoid arrest and forcible deportation and forcibly expelling others. Iran also began a crackdown on migrants at around the same time.

Since then, millions have streamed across the border into Afghanistan, including people who were born in Pakistan decades ago and had built lives and created businesses there.

Last year alone, 2.9 million people returned to Afghanistan, Jamal said, noting it was “the largest number of returns that we have witnessed to any single country.”

Afghanistan’s Taliban rulers have criticized the mass expulsions.

Afghanistan was already struggling with a dire humanitarian situation and a poor human rights record, particularly relating to women and girls, and the massive influx of people amounting to 12% of the population has put the country under severe strain, Jamal said.

Already in just the month and a half since the start of this year, about 150,000 people had returned to Afghanistan, he added.

Afghan authorities provide care packages for those returning that include some food aid, cash, a telephone SIM card and transportation to parts of the country where they might have family. But the returns have strained resources in a country that was already struggling to cope with a weak economy and the effects of a severe drought and two devastating earthquakes.

In November, the U.N. development program said nine out of 10 families in areas of Afghanistan with high rates of return were resorting to what are known as negative coping mechanisms — either skipping meals, falling into debt or selling their belongings to survive.

“We are deeply concerned about the sustainability of these returns,” Jamal said, noting that while 5% of those who return say they will leave Afghanistan again, more than 10% say they know of someone who has already left.

“These decisions, I would underscore, to undertake dangerous journeys, are not driven by a lack of a desire to remain in the country, on the contrary, but the reality that many are unable to rebuild their viable and dignified lives,” he said.