The Government of Pakistan on Friday formally requested the National Electric Power Regulatory Authority (NEPRA) to approve a reduction of Rs. 1.71/unit in electricity rates to be paid through subsidies provided by the government.
NEPRA will hold a hearing on the request on April 4. If approved, the reduction will apply to all power companies, including K-Electric, and will cover the period from April to June 2025. In a statement, the government said the subsidy—covering cost differences in electricity generation and distribution—was aimed at easing financial burdens on consumers during the specified duration. It also serves to ensure a uniform consumer tariff nationwide.
In various recent hearings at NEPRA, K-Electric acknowledged receiving Rs. 804 billion in tariff differential subsidies since 2006 to offset the impact of its higher-cost power generation. In the ongoing fiscal year, the government budgeted Rs. 681 billion for power tariff-related subsidies, with Rs. 276 billion allocated for Tariff Differential Subsidy to DISCOs, plus Rs. 174 billion for KE.
The government maintains it is striving to reduce power costs to boost industry and offer relief to the common man. The International Monetary Fund (IMF) recently allowed authorities to reduce electricity tariffs by Rs. 1/kWh for all consumers. This relief is expected to be funded through revenue collected from levies imposed on captive power plants, said Mahir Binici, IMF Resident Representative in Pakistan.