ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Friday announced an increase of around 20 percent in the uniform power tariff to generate Rs3.8 trillion in funds for 10 power distribution companies (discos) during the fiscal year 2024-25, amid Pakistan’s talks with the International Monetary Fund (IMF) for a new bailout program.
The Rs5.72 per unit increase, which will take effect from July 1 after the government issues a formal notification, will provide Rs485 billion in additional revenue to discos and strengthen the government’s position in securing an IMF bailout in July.
Islamabad is currently locked in talks with the IMF for a longer-term bailout of around $8 billion after the last $3 billion helped Pakistan avert a sovereign default in June last year. Pakistan is expected to formally request for the program in the coming weeks.
NEPRA said the total Power Purchase Price (PPP) of ex-WAPDA distribution companies (XWDISCOs) for FY 2024-25 worked out as Rs3,277 billion, which includes Rs1,161 billion for fuel & variable cost and Rs2,116 billion as capacity charges.
“The capacity charges translate into Rs.6,957/kW/month, based on projected average monthly MDI of 25,348 MW. Thus, the capacity charges works out as around 65 percent of the total projected PPP of XWDISCOs, whereas energy cost is around 35 percent of the total projected PPP,” it said in a circular.
“In terms of average per unit PPP of XWDISCOs on unit purchased basis i.e. before adjustment of allowed T&D losses of XWDISCOs, capacity charges works out as Rs. 17.66/kWh, whereas energy charges are Rs.9.69/kWh, totaling to Rs.27.35IkWh for the FY 2024-25.”
The national average power purchase price works out as Rs.27.00/kWh, according to NEPRA. The generation cost is transferred to the DISCOs as per the prescribed mechanism.
Under the last IMF bailout, Pakistan was told to prevent further accumulation of circular debt in its power sector, arising from subsidies and unpaid bills. For a new program, the South Asian nation will need to implement reforms to reduce costs by improving electricity transmission and distribution, moving captive power into the grid, improving governance, and combating theft.
It will also have to maintain power and gas tariffs at levels that ensure cost recovery, with adjustments made to safeguard the financially vulnerable, through existing progressive tariff structures.
The government has the authority to make adjustments with different rates of increases for various consumer categories without affecting the overall revenue requirement determined by NEPRA.
Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
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Pakistan regulator increases power tariff by 20 percent amid new bailout talks with IMF
- The Rs5.72 per unit increase, which will take effect from July 1, will provide Rs485 billion in additional revenue to distribution companies
- Under last bailout, IMF told Pakistan to prevent further accumulation of circular debt in power sector, arising from subsidies and unpaid bills
Pakistan arrests suspect arriving from Cambodia amid crackdown on human smuggling
- Suspect worked at an “online fraud company” in Cambodia, later started smuggling people from Pakistan, says FIA
- Pakistan has intensified crackdown against human smugglers after hundreds of migrants drowned near Pylos in 2023
ISLAMABAD: Pakistan’s Federal Investigation Agency (FIA) on Sunday said it had arrested a key suspect involved in smuggling humans who had arrived from Cambodia, alleging he was also part of an international fraud network.
The suspect, identified as Zainullah, was arrested by FIA officials when he arrived in the southern port city of Karachi from Cambodia.
Zainullah had traveled from Pakistan to Cambodia in September 2024, a press release issued by the agency said.
“He worked at an online fraud company in Cambodia and later became involved as an agent in recruiting individuals from Pakistan,” the FIA said.
The FIA said it recovered images of multiple individuals’ passports, payment receipts and bank transaction records after extracting data from Zainullah’s phone.
It said the suspect received money through personal bank accounts and a cryptocurrency account.
“The suspect has been handed over to the FIA Anti-Human Trafficking Circle, Karachi, for further legal proceedings,” the FIA said.
“Further investigation is underway.”
Pakistan intensified action against illegal migration in 2023 after hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel sank off the Greek town of Pylos, one of the deadliest boat disasters in the Mediterranean.
Authorities say they continue to target networks sending citizens abroad through dangerous routes, following heightened scrutiny at airports and a series of arrests involving forged documents.
Pakistan’s interior ministry said this week illegal migration to Europe has declined by 47 percent this year after its nationwide crackdown, saying that more than 1,700 human smugglers have been arrested in 2025.
