The Government will announce a reduction of RS8 electric tariffs per unit, and Prime Minister Shehbaz Sharif is expected to make the official announcement on March 23 after the approval of the International Monetary Fund (IMF), said Express News.
According to the sources, the Ministry of Finance and the Energy Division is exploring additional measures to further reduce electricity rates in RS2 per unit. A final decision will be made before the announcement.
The reduction, as of April 1, 2025, will be reflected in consumer invoices as of May. From RS8 per unit of cutting, RS4.73 per unit will be a permanent adjustment.
The rate adjustment is of multiple measures, including the cancellation of the agreements with six independent energy producers (IPP), reviewing the contracts with 16 IPP under a “carry and payment” model, change the currency of the electric power plants of the energy plants of the United States to the Pakistani rupe 13%, with the wrist rate.
The authorities indicated that rates reduction calculations also represent the impact of the lowest oil prices on the global market since March 16, 2025. The maintenance of current prices of oil is expected to maintain approximately RS168 billion, which allows a reduction of RS1.30 per unit in energy rates.
The IMF has agreed to approve this relief, recognizing the government’s decision to freeze oil prices for three months. If international oil prices decrease even more, the financial impact could reach RS250 billion. However, the RS1.30 per unit of relief will only be available for a month.
The Government aims to make RS6 per unit of RS8 reduction a permanent adjustment. In addition, the sources indicate that the RS35 PTV rate included in the electricity invoices can be eliminated from July 2025.
For the 2026 fiscal year budget, the Government plans to allocate funds to maintain PTV operations without depending on electricity bill collections.
