The International Monetary Fund (IMF) has sanctioned a Re1 per unit reduction in electricity tariffs, offering relief to all consumers.
This reduction will be financed through revenue collected from levies on captive power plants, previously subjected to a gas consumption levy.
Read more: IMF Approves Electricity Tariff Reduction for Pakistan
Additionally, the government is formulating an electricity relief package, pending IMF approval.
As part of the Staff-Level Agreement (SLA) between Pakistan and the IMF, a new carbon levy will be introduced. The deal also includes agreements to raise water prices and open the automobile sector to global trade.
The prime minister is set to announce an average Rs. 7 per unit tariff reduction, effective from April 1, 2025. Other economic measures, including the carbon levy, water price hikes, and automotive sector reforms, will be implemented from July 1, 2025.
Under this agreement, Pakistan has secured access to $1 billion under the Extended Fund Facility (EFF). The IMF also reported that inflation in Pakistan has hit its lowest level since 2015, with further economic recovery expected
