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IMF Discussing Electricity Tariffs Revisions with Pakistan
Proposed tariff changes may raise inflation by 1.1 percentage points while reducing industrial prices by up to 15%, easing pressure on Pakistan’s power sector and industry.
- On February 14, the International Monetary Fund said it is discussing proposed electricity tariff revisions with Pakistan authorities, stressing the burden should not fall on middle- or lower-income households under the $7 billion Extended Fund Facility.
- Long-Running circular debt has weighed on Pakistan's power sector, prompting repeated tariff hikes under IMF-backed reforms since 2023 and proposals to ease pressure on industrial users and debt-laden state power generation and distribution companies.
- On Monday, NEPRA said lowest-income households using 1-100 units will see fixed charges rise to Rs400, and 100-300 unit users could face up to 76% rate hikes, while solar export rates are cut.
- The pricing changes would lower industrial prices 13-15% and remove 102 billion rupees in subsidies, while analysts at Optimus Capital Management say the plan could push inflation higher by 1.1 percentage points over 12 months.
- Prime Minister Shehbaz Sharif on Wednesday ordered a review of NEPRA's solar changes, with Arzachel said that 'Excessively high fixed charges risk driving consumers toward full grid defection.
16 Articles
16 Articles
IMF discussing electricity tariffs revisions with Pakistan - Profit by Pakistan Today
Ongoing discussions will assess whether the proposed tariff revisions are consistent with the loan commitments and evaluate their potential impact on macroeconomic stability, including inflation, Fund says
IMF says Pakistan's power tariff changes must not hurt middle and lower-income families
Pakistan proposes tariff overhaul under $7bn IMF's EFF.Changes may raise inflation, ease pressure on industry: analysts.Electricity has heavy CPI weight, making hikes politically sensitive.The International Monetary Fund is discussing proposed...
IMF discussing electricity tariffs revisions with Pakistan
The International Monetary Fund is discussing proposed electricity tariff revisions with Pakistan authorities, the fund said in a statement to Reuters on Saturday, adding that the burden of the revisions should not fall on middle‑ or lower‑income households. "The ongoing discussions with the authorities will assess whether the proposed tariff revisions are consistent with these commitments and evaluate their potential impact on macroeconomic stab
IMF Flags Inflation Risk in Tariff Plan
IMF says Pakistan’s proposed power tariff overhaul must protect middle- and lower-income households as reforms under the $7bn EFF risk raising inflation. Read more: IMF to Review Pakistan $1.2 billion Loan The International Monetary Fund (IMF) has said Pakistan’s proposed electricity tariff revisions must not disproportionately burden middle- and lower-income households, as discussions continue under the country’s $7 billion Extended Fund Facili…
IMF Cautions Pakistan on Electricity Tariff Hikes Amid Reforms
The International Monetary Fund has warned that Pakistan’s proposed electricity tariff increases must be carefully structured to avoid placing extra financial burden on middle and lower-income households. The statement comes as Islamabad reviews power sector reforms tied to its Rs. 7 billion Extended Fund Facility (EFF) program. In discussions with Pakistani authorities, the IMF is […] The post IMF Cautions Pakistan on Electricity Tariff Hikes A…
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