The government’s plan to reduce the electricity tariff has faced a setback due to the International Monetary Fund (IMF), which currently blocks an employee level agreement (SLA) regarding the first bi -annual review of Pakistan for the attachment of the $ 7 billion in fund. dawn I mentioned.
It is reported that the Prime Minister will announce a decrease of 8 rupees per unit in electricity rates during his speech on March 23. However, such an advertisement was not issued, as the Prime Minister instead chaired a meeting dealing with the issue in the energy sector.
On March 15, the Prime Minister’s office indicated that the government will maintain oil prices at its current levels despite the expected reduction of 13 rupees per liter, which transmits savings to electricity consumers. The government also prepared a relief package using savings of international oil prices.
However, the proposed tariff was reduced to check the International Monetary Fund, which is currently reviewing the economic performance of Pakistan for the first six months of the fiscal year and its expectations for the rest of 2025.
According to officials familiar with the matter, the International Monetary Fund did not agree to the proposed numbers during their review meetings, which delays any advertisement.
While a tariff of 2 rupees was discussed per unit during talks with the International Monetary Fund, the government also looked at increasing the oil tax to compensate for the loss of revenue. Although this may be neutral in revenue, the International Monetary Fund requires a comprehensive review of the general financial impact before approval of the plan.
In addition, the National Electricity Regulatory Authority (NEPRA) reviews the petitions from the energy distribution companies (DISCOS) on the annual tariff adjustments, which increases the complexity of the situation.
The sources indicate that although the government’s plans are facing procedural and organizational challenges, a low tariff of about 5 rupees per unit may still be investigated once they are supported by sufficient data.
