The Federal Cabinet approves a Rs. 5.72 per unit hike in NEPRA base tariff at the IMF’s request

The federal cabinet has approved a hike in the base electricity tariff, effective from July 1, 2024. The National Electric Power Regulatory Authority (NEPRA) had submitted a proposal for an increase of Rs. 5.72 per unit. NEPRA proposed raising the average basic electricity tariff from Rs. 29.78 to Rs. 35.50 per unit.

Read More: The IMF has requested Pakistan to raise electricity prices by Rs. 5 per unit before July 10

Following NEPRA’s approval, the federal government will issue a notification to implement the new rates. This increase aligns with the International Monetary Fund (IMF)’s demand for Pakistan to raise the electricity tariff by Rs. 5 per unit before July 10, 2024, as part of the conditions for a new program. The IMF has set hikes in electricity and gas prices as prior actions for the new program, making an increase in electricity prices very likely.