ISLAMABAD: Pakistan’s national power regulator has cut the prices of electricity by Rs2.12 per unit on account of fuel adjustment charges, it said on Thursday.
The National Electric Power Regulatory Authority (NEPRA) has to make adjustments in the power tariff on account of any variations in fuel charges on a monthly basis.
The reduction in electricity prices followed a request by the Central Power Purchasing Agency (CPPA), which had worked out the fuel cost for the month of January.
“The authority... has reviewed and assessed a National Average Uniform decrease of (Rs2.1240/kWh) in the applicable tariff for XWDISCOs on account of variations in the fuel charges for January 2025,” NEPRA said in a notification issued late Thursday.
“XWDISCOs (distribution companies) shall reflect the fuel charges adjustment in respect of January 2025 in the billing month of March 2025.”
The development comes more than a week after Pakistan’s Power Minister Awais Leghari announced a reduction in power tariff for households consuming up to 300 units of electricity and those using agricultural tube-wells.
“By waiving these charges for low-usage consumers and agricultural tube-wells, the government aims to ease the financial burden on farmers and households with limited electricity consumption,” Leghari was quoted as saying by the state-run APP news agency.
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The country’s outdated infrastructure and inadequate power plants further exacerbate costs, while underutilization of domestic resources such as hydropower and coal add to the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 lead to inflation in the country.
Pakistan power regulator cuts tariff on account of fuel price adjustment
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Pakistan power regulator cuts tariff on account of fuel price adjustment
- The National Electric Power Regulatory Authority makes adjustments in power tariff on account of any variations in fuel charges on a monthly basis
- The South Asian country produces electricity with the help of imported fossil fuels, amid underutilization of domestic resources like hydropower, coal
Pakistan says Roosevelt Hotel deal still being structured after PIA sale
- The century-old Manhattan hotel is among state-owned properties under review as Islamabad pushes a privatization drive
- Pakistan said this year it was examining multiple options after international media reported the hotel’s possible demolition
ISLAMABAD: Pakistan’s defense minister Khawaja Asif said on Wednesday the government was working on structuring a transaction for the Roosevelt Hotel in New York, a day after a leading Pakistani consortium bought a majority stake in Pakistan International Airlines, as Islamabad presses ahead with efforts to offload loss-making state assets.
Asif’s comments came after the Arif Habib Group acquired 75 percent of PIA for Rs 135 billion ($482 million), marking the government’s first major privatization deal in years and reviving focus on the future of other high-value state-owned assets, including the Roosevelt Hotel, which is owned by PIA through its investment arm.
The hotel, a century-old Manhattan property located near Grand Central Terminal, Times Square and Fifth Avenue, is considered one of Pakistan’s most valuable overseas assets, though it was closed in 2020 due to heavy losses. Asked about the future of the property following the PIA privatization, Asif told Geo TV it was still a work in progress.
“The shape of the transaction is being made,” he said, adding that a previous offer of around $375 million had not materialized.
Pakistan’s privatization plans for the Roosevelt have faced repeated delays.
Earlier this year, Muhammad Ali, adviser to the prime minister on privatization, said the government was examining multiple options after Bloomberg reported plans for its demolition.
Ali said there were various options on the table, including continuing hotel operations or entering a joint venture in which Pakistan would contribute the land while a partner brings in equity.
The government also said it wanted to complete the Roosevelt Hotel’s privatization this year, though the plan does not seem close to completion.
