Pakistan PM orders ‘exemplary punishment’ for officials found overcharging electricity consumers

Muhammad Noshad, a Pakistani employee of the state-run Islamabad Electric Supply Company (IESCO), takes a meter reading with his smartphone at a commercial building in Islamabad on November 7, 2018. (AFP/File)
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Updated 07 July 2024
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Pakistan PM orders ‘exemplary punishment’ for officials found overcharging electricity consumers

  • Inquiry report last year revealed 13.76 million Pakistanis were charged for over 30 days of electricity usage 
  • PM Shehbaz Sharif directs authorities to suspend guilty officials, register cases against them 

ISLAMABAD: Prime Minister Shehbaz Sharif this week directed authorities to take strict action against officers of power distribution companies who were found guilty of overbilling consumers, state-run media reported, as Pakistani brace for another massive power tariff hike this month. 

Last year, the National Electric Power Regulatory Authority (NEPRA) disclosed that Pakistan’s power distribution companies had charged excessive bills to consumers by adopting “illegal and unlawful practices.” This was revealed in a 14-page inquiry report after nationwide protests broke out last year in Pakistan over inflated bills. 

The inquiry report revealed the billing cycles carried out by distribution companies ranged from 30 days to 40 days and even more. As per notified tariff terms and conditions, a billing period means a billing month of 30 days or less reckoned from the date of the last meter reading. 

The inquiry report revealed that 13.76 million people were charged for more than 30 days of electricity usage, while 0.4 million were sent average bills due to faulty electricity meters.

“The prime minister said that exemplary punishment should be given to those officials who had included extra units in the monthly bills of consumers with their anti-public attitude, besides unmasking them who had sent extra units to the protected consumers’ category, using less than 200 units per month,” the Associated Press of Pakistan (APP) said. 

This was said by PM Sharif as he chaired a high-level meeting to review reforms in the power sector on Saturday, APP reported. 

The Pakistani premier tasked the power division to suspend such individuals and ordered the Federal Investigation Agency (FIA) to register cases against them.

He directed authorities to accelerate their efforts and tap into producing power from renewable energy resources, adding that Pakistan could no longer afford to generate power on imported fuel.

“He also expressed his resolve not to pass on the buck to the poor segment of society of the wrong policies and measures of the past,” the state media said.

Pakistan’s National Electric Power Regulatory Authority (NEPRA) has called a public hearing on July 8 on the question of passing on more than Rs700 billion additional burden to electricity consumers during the current fiscal year by jacking up the average national tariff by around Rs5.72 per unit. 

The South Asian country approved the tariff to strengthen the government’s position in securing a fresh financial bailout from the International Monetary Fund (IMF) as it tries to wiggle out of a macroeconomic crisis. 


Pakistan receives $1.2 billion from IMF under EFF, RSF loan programs— central bank

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Pakistan receives $1.2 billion from IMF under EFF, RSF loan programs— central bank

  • IMF Executive Board approved Pakistan’s second review under EFF, first review under RSF loan programs this week 
  • Disbursements from IMF have been crucial for cash-strapped Pakistan as it tries to recover from economic crisis 

ISLAMABAD: Pakistan’s central bank announced on Thursday that it has received $1.2 billion under the International Monetary Fund’s (IMF) External Fund Facility and Resilience and Sustainability Facility (RSF) loan programs. 

The IMF approved a $7 billion bailout package for Pakistan under its EFF program in September 2024 while in May 2025, it approved a separate $1.4 billion loan to Pakistan under its climate resilience fund. The RSF will support Pakistan’s efforts in building economic resilience to climate vulnerabilities and natural disasters. 

The global lender approved Pakistan’s second review under its $7 billion EFF program and first review under the RSF loan on Tuesday. As per the State Bank of Pakistan (SBP), the central bank received a combined sum of $1.2 billion under the EFF and RSF on Dec. 10. 

“The amount would be reflected in SBP’s foreign exchange reserves for the week ending on Dec. 12, 2025,” the SBP said in a statement. 

IMF bailouts have been crucial for cash-strapped Pakistan, which has been struggling with a prolonged economic crisis that has exhausted its financial reserves and weakened its currency. Pakistan came to the brink of a sovereign default in 2023 before a last-gasp IMF bailout package helped it avert the crisis. 

Pakistan has had to take tough decisions to comply with the IMF’s loan requirements, which include scrapping subsidies from food and fuel items to trigger inflation. Since then, Pakistan has attempted to regain stability by sharply reducing inflation and recording a current account surplus. 

The disbursement, however, comes at an important time for the South Asian country as it mitigates losses from a deadly monsoon season that killed over 1,000 people since late June and caused at least $2.9 billion in damages to agriculture and infrastructure.