ISLAMABAD: The government has decided to implement new electricity rates from July, announced the power division on Thursday, adding the new tariffs would not have a huge impact on the monthly bills currently paid by consumers.
The announcement comes against the backdrop of the government’s efforts to secure a staff-level agreement with the International Monetary Fund (IMF) for a bailout facility of more than $6 billion.
Some local media outlets reported the new rates reflected a per-unit increase of up to Rs5.72.
The Pakistani people have already been complaining of the high cost of living, especially since the announcement of the federal budget last month, which has fixed an ambitious tax collection target of nearly $47 billion.
“New electricity rates will be implemented from July 2024,” the power division said in a statement. “The new electricity tariff will have a slight impact on most people’s monthly bills.”
“To minimize the increase in electricity bills, the government will provide a subsidy of Rs440 billion,” it added. “For 16.8 million or 58 percent poor household consumers, the increase will be less than two percent.”
The statement said for the relatively wealthier 42 percent consumers, the average increase will be nine percent.
The power division said the electricity rates were expected to decrease as the economy improved.
“By January 2025, electricity rates for all consumers are expected to be on average 3 percent lower compared to June 2024,” it maintained.
The statement said the burden on the industrial sector had been reduced by Rs150 billion to promote production and strengthen the country’s economy.
“The notification of electricity prices will be issued after NEPRA’s [National Electric Power Regulatory Authority’s] hearing,” it added.
