By The government has approved a significant increase in electricity prices, raising rates by up to 51% or Rs7.12 per unit starting in July. This is the highest percentage increase for lower-income groups.
As a result, 32.5 million consumers, mostly households, will have to pay an additional Rs580 billion this fiscal year. This increase is on top of the current electricity costs, largely due to decades of mismanagement and poor energy policies.
Among these consumers, 26 million households belong to the poorest and low-middle-income groups, who will experience the highest percentage increases.
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For the first time, the government has also introduced fixed monthly charges for residential consumers, ranging from Rs200 to Rs1,000 per unit.
This price hike was a crucial condition set by the International Monetary Fund (IMF) for Pakistan to qualify for the next bailout package.
The federal cabinet approved the increase through circulation, bypassing the usual process of going through the Economic Coordination Committee (ECC). A government official confirmed that a notification for the new rates would be issued soon.
