In a significant move, the International Monetary Fund (IMF) has granted the Pakistan government approval to reduce electricity tariffs by Rs1 per kilowatt-hour for all consumers. This relief is part of a broader package aimed at alleviating the financial burden on electricity users.
The reduction, which is expected to provide relief of up to Rs100 billion, will be financed through revenue generated from a levy imposed on captive power plants using natural gas. A household consuming 500 units of electricity could see a monthly saving of Rs500 under the new plan.
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This development comes just days after Pakistan and the IMF reached a staff-level agreement, unlocking access to an additional $1 billion under the Extended Fund Facility (EFF). The reduction in tariffs is part of ongoing reforms in Pakistan’s energy sector, aimed at improving the financial sustainability of the country.
Pakistani authorities have confirmed that the IMF’s executive board will soon approve the second tranche of $1 billion, with an additional $1.3 billion from the Resilience and Sustainability Facility (RSF) to be disbursed over 28 months, subject to the implementation of key reforms, including a carbon levy.
