Government raises power tariff by Rs2.56 per unit in June FCA

Summary:

• Nepra increases electricity tariff by Rs2.56 per unit under June’s FCA.
• Lifeline and K-Electric consumers are exempt from the hike.
• The rise adds a Rs39 billion burden on consumers due to additional taxes.

Pakistan’s National Electric Power Regulatory Authority (Nepra) has announced a power tariff hike of Rs2.56 per unit under the fuel cost adjustment (FCA) for June, to be reflected in August bills. This increase does not apply to lifeline and K-Electric consumers.

The hike, formalized in a notification issued on Thursday, adds a financial burden of Rs33.45 billion, escalating to Rs39 billion after an 18% GST is applied. The Central Power Purchasing Agency (CPPA) initially requested a Rs2.63 per unit increase.

This comes at a time when rising electricity costs and high taxes are triggering public protests across Pakistan. The government is facing significant pressure to find ways to reduce electricity rates to alleviate financial strain on the public.

In recent months, Prime Minister Shehbaz Sharif’s government raised the base electricity tariff to Rs48.48 per unit, affecting domestic consumers nationwide, including Karachi. However, consumers using up to 200 units per month received temporary relief from the hike.

The tariff increase is part of broader economic measures aimed at securing a new $7 billion, three-year bailout program from the International Monetary Fund (IMF). The program is expected to stabilize Pakistan’s economy and foster conditions for sustainable growth, pending approval from the IMF’s Executive Board.