Federal Cabinet Approves Electricity Price Hike of Up to Rs. 7.5 Per Unit

Electricity Price Hike

Federal Cabinet Approves Electricity Price Hike

The recent approval of a significant electricity price hike by the federal cabinet has sent shockwaves through the masses in Pakistan. The decision, driven by the need to comply with International Monetary Fund (IMF) conditions, comes at a time when the country is already grappling with the adverse impacts of inflation.

Understanding the New Tariff Structure

Under the new tariff structure, the price per unit of electricity has been raised from Rs. 3 to Rs. 7.50 per unit. This substantial increase has drawn widespread concern among consumers who are already burdened by rising living costs.

IMF Conditions and Energy Sector Reforms

The IMF often imposes conditions on countries seeking financial assistance to address their economic challenges. These conditions typically include measures to reform various sectors, including the energy sector. In this context, Pakistan’s federal cabinet has felt compelled to raise electricity prices to fulfill IMF requirements.

Impact on the Masses

The decision to hike electricity prices has had a powerful jolt on the masses, many of whom are struggling to make ends meet. As the cost of living continues to rise, the increase in electricity tariffs adds further financial pressure on households and businesses alike.

Previous Electricity Tariff Adjustments

Prior to the recent approval by the federal cabinet, the National Electric Power Regulatory Authority (NEPRA) had already sanctioned an increase in electricity tariffs for the current financial year. The federal government had submitted a request to NEPRA to raise the basic electricity price, and the authority is now expected to conduct a hearing on this request before making a final decision.

Differentiated Tariff Categories

The proposed price adjustments are structured to vary according to different consumption levels. For consumers utilizing 100 units of electricity, the price increase per unit is set at Rs. 3. Those using 101 to 200 units will face a slightly higher electricity rate of Rs. 4 per unit after the proposal’s acceptance.

Similarly, electricity consumers utilizing 201 to 300 units will encounter a proposed price hike of Rs. 5 per unit. For those using 301 to 400 units, the cost is set to increase by Rs. 6.50 per unit. The government has also proposed a significant increase of Rs. 7 per unit for consumers utilizing 400 to 700 units of electricity.

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Implementation and Future Outlook

Once NEPRA concludes its evaluation, the federal government will issue a formal notification to implement the proposed tariff hike. The scheduled date for the price increase is set for July 1, pending NEPRA’s decision.

While the electricity price hike is expected to generate additional revenue for the government, it also raises concerns about its impact on the overall economy and the cost of doing business in the country. Industries and businesses that rely heavily on electricity may face challenges in remaining competitive as operating costs rise.

Seeking Sustainable Solutions

As the government moves forward with its decision to raise electricity prices, it becomes essential to consider sustainable solutions to address the energy crisis. Diversification of energy sources, investment in renewable energy, and improved energy efficiency measures are some of the approaches that can help reduce the reliance on costly imports and stabilize electricity prices in the long run.

Consumer Awareness and Energy Conservation

In the face of rising electricity costs, consumer awareness and energy conservation become crucial factors. Educating the public about energy-efficient practices and encouraging the adoption of energy-saving technologies can help mitigate the impact of the price hike on households.

Balancing Economic Realities and Public Welfare

While the electricity price hike may be a necessary step to meet IMF conditions and stabilize the economy, striking a balance between economic realities and public welfare is of paramount importance. The government must consider measures to provide targeted support to vulnerable populations and implement policies that promote inclusive growth.


The recent approval of a substantial electricity price hike by the federal cabinet has stirred significant concerns among the masses in Pakistan. The decision, driven by the need to comply with IMF conditions, adds further financial strain on consumers already grappling with inflation. As the country navigates this challenging phase, seeking sustainable solutions, promoting consumer awareness, and balancing economic realities with public welfare become vital components in mitigating the impact of the price increase.