Pakistan will announce a Rs8 per unit reduction in the electricity tariff. Prime Minister Shehbaz Sharif will formally make the announcement after his trip to Saudi Arabia.
Sources revealed on Wednesday that the International Monetary Fund (IMF) has approved the government’s plan, paving the way for financial relief. The Ministry of Finance and the Power Division are exploring options aimed at achieving a reduction of Rs2 per unit, with a goal of implementing a permanent decrease of Rs6 per unit.
“The proposal will be finalized before March 23,” a source confirmed. The new Shehbaz Sharif electricity tariff takes effect on April 1, reducing bills from May. Of the Rs8 total, Rs4.73 per unit is a lasting adjustment. This follows the cancellation of contracts with six Independent Power Producers (IPPs) and a shift to a ‘take-and-pay’ model for 16 others.
Read: Power Tariff to Drop by Rs 4.95 per Unit in Karachi
Additional savings were achieved by converting bagasse-based plants into Pakistani rupees, using an exchange rate of Rs168 per US dollar. A 13% reduction in the return on equity for government power plants also contributed to these savings. Officials noted that global oil prices began to drop on March 16, 2025.
The potential reduction is related to Shehbaz Sharif’s decision to decrease electricity tariffs, which could have a fiscal impact of Rs168 billion if oil prices stay low. Consumers can anticipate real relief in the near future.
