Pakistan’s federal cabinet approved a late-night decision to increase electricity prices significantly in order to meet IMF conditions. The hike will affect different consumer categories, with costs rising from Rs 13.48 to Rs 16.48 per unit for residential users using 1 to 100 units. For residential users consuming above 700 units, the cost will go up from Rs 35.22 to Rs 42.72 per unit.
The decision was made based on a recommendation from the National Electric Power Regulatory Authority (Nepra), and it will be subject to public review through a public hearing before final approval. If approved, the new tariffs will be effective from July 1. This move follows the IMF’s approval of a $3 billion loan for Pakistan, and the government aims to fulfill its commitments to the global lender by addressing the country’s economic challenges. However, the decision may have an impact on consumers and is currently under public review.