(Web Desk Monitoring) — In a surprising turn of events, the Pakistani government has initiated steps to reverse its recent decision to increase electricity tariffs for consumers using up to 200 units per month.
According to media reports, the government has proposed to withdraw the tariff increase for both protected and non-protected consumers using up to 200 units. Prime Minister Shehbaz Sharif has directed the cabinet to approve the proposal on an urgent basis.
The proposed relief, effective from July to September 2024, aims to alleviate the burden on low-income households. The federal government will allocate a subsidy of Rs50 billion to offset the tariff reduction.
This decision follows the federal cabinet’s approval of a significant base tariff increase for domestic electricity consumers last week, fulfilling a key condition imposed by the International Monetary Fund (IMF). The cabinet had approved a Rs7.12 increase per unit, leading to higher electricity bills for consumers.
Previously, the cabinet approved a base tariff increase to Rs48.84 per unit, which, after adding sales tax, would reach Rs57.63 per unit. The total tariff, including adjustments and taxes, was expected to exceed Rs65 per unit.
The cabinet also approved a Rs3.95 increase per unit for protected consumers using 1 to 100 units, a Rs4.10 increase for protected consumers using 101 to 200 units, a Rs7.11 increase for non-protected consumers using 1 to 100 units, and a Rs7.12 increase for non-protected consumers using 101 to 200 units.
