Overview
- IMF officials confirmed ongoing talks with Islamabad on the proposed electricity tariff changes, saying the burden must not fall on middle- or lower-income households and that macroeconomic and inflation effects will be scrutinized.
- NEPRA has approved a reworked tariff structure that raises fixed monthly charges for many homes while cutting some per‑unit rates, and has forwarded the revision to the federal government for notification within 30 days.
- Under the redesign, more revenue shifts to fixed charges—estimated to add about Rs132 billion annually—while roughly Rs102 billion in cross‑subsidies is removed, with industrial users set to receive per‑unit cuts of up to Rs4.58.
- Analysts warn the package could lift inflation by around 1.1 percentage points over a year and sharply raise bills for households using 100–300 units because of new fixed fees, even as industrial tariffs fall an estimated 13–15%.
- The IMF noted power‑sector circular debt accumulation has stayed within program targets due to improved recoveries and loss reduction, as the prime minister orders a review of NEPRA’s recent rooftop‑solar pricing changes.