Pakistan is set to formally communicate its decision to the International Monetary Fund (IMF) regarding the rebasing of electricity tariffs, a move aimed at easing financial pressures on consumers. The government hopes to avoid a potential public outcry caused by high electricity rates and to prevent the risk of protests. This formal notification follows earlier informal discussions with the IMF, with the government now seeking the lender’s consent for the proposed changes.
The policy shift involves moving the tariff rebasing from July 1 to January 1 each year. This adjustment will align tariff changes with the winter season when electricity demand and costs are lower, helping mitigate the financial strain on consumers during peak summer months. The National Electric Power Regulatory Authority (Nepra) has been instructed to revise its timelines for tariff determination accordingly.
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According to government officials, the shift in tariff rebasing was discussed informally with the IMF during previous meetings, and the Finance Division has now recommended that it be formally communicated to ensure compliance with international commitments. The goal is to provide consumers with a smoother financial transition and a more predictable electricity pricing structure throughout the year.
Nepra has expressed support for the proposal in principle, and the Power Division has committed to working with the regulator to implement the change. This move is expected to address affordability concerns and improve public sentiment, while also complying with existing regulatory frameworks and tariff procedures.
