Federal Cabinet Approves Rs. 5.72 Per Unit Hike in NEPRA Base Tariff on IMF Demand

The federal cabinet has approved a hike in the base electricity tariff, effective from July 1, 2024. The National Electric Power Regulatory Authority (NEPRA) had submitted a proposal for an increase of Rs. 5.72 per unit. The regulator had proposed increasing the average basic electricity tariff from Rs. 29.78 to Rs. 35.50 per unit. Following NEPRA’s approval, the federal government will issue a notification to implement the new rates. It should be mentioned here that the International Monetary Fund (IMF) has asked Pakistan to increase the electricity tariff by Rs. 5 per unit before July 10, 2024, to get a new program. The lender has set electricity and gas price hikes as prior actions for the new program, so an increase in electricity prices is very much likely.