In 2023, Pakistan responded to the International Monetary Fund’s (IMF) demands by significantly raising electricity and gas tariffs, imposing an additional burden of over Rs2,200 billion on consumers.
The government increased the electricity tariff by Rs10.73 per unit, discontinuing Kisan and Exports sector packages worth Rs65 billion to meet IMF requirements.
Consumers faced a permanent surcharge of Rs3.23 per unit, coupled with monthly and quarterly adjustments, leading to a total burden of over Rs1,150 billion in 2023. The electricity tariff underwent ten increases in 2023 through monthly fuel adjustments.
Additionally, in line with IMF directives to tackle circular debt in the energy sector, the Pakistani government raised gas tariffs by a staggering 312% in 2023. This included a 112% increase on January 1, 2023, and a subsequent 200% hike in November. Fixed charges for protected consumers soared by Rs400 per month from Rs10.
On December 20, the National Electric Power Regulatory Authority (NEPRA) announced a Rs1.15 per unit hike in electricity tariffs for the first quarter of the current financial year, with consumers facing additional payments in the January to March 2024 bills.
