In a welcome move, the Pakistani government has withdrawn its decision to increase electricity prices for protected consumers with up to 200 units per month. According to sources, Prime Minister Shehbaz Sharif has obtained approval from the federal cabinet to reverse the decision, which was earlier taken to implement a condition of the International Monetary Fund (IMF).
The National Electric Power Regulatory Authority (Nepra) had recommended an increase in the basic tariff of electricity by an average of Rs5.72 per unit. However, the government has decided to grant a subsidy of approximately Rs50 billion to provide relief to consumers during the remaining summer period, from July to September 2024.
As a result, lifeline customers using up to 50 units per month will continue to pay Rs3.95 per unit, while those using between 51 and 100 units per month will pay Rs7.74 per unit. This decision is expected to provide significant relief to low and middle-income families, who were likely to be disproportionately affected by the price hike.
The government’s reversal of the decision is seen as a positive step towards mitigating the economic burden on the common man. The move is also expected to help reduce inflationary pressures and stimulate economic growth.
