In a strategic move to alleviate financial pressure on electricity consumers and prevent public unrest, Pakistan has decided to formally inform the International Monetary Fund (IMF) about its planned rebasing of electricity tariffs. The proposal aims to shift the tariff adjustment period from July 1 to January 1 each year, reducing the impact on consumers during peak summer months when electricity demand and costs are highest.
The government had initially informed the IMF about the rebasing plan during previous meetings. High electricity rates during the summer have triggered public dissatisfaction in the past, and the tariff rebasing is seen as a way to ease the burden on consumers and avert potential protests. This change will also help the country meet its commitments to the IMF.
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Policy guidelines have already been issued to the National Electric Power Regulatory Authority (Nepra), instructing it to revise the timeline for the tariff determination process. The proposed adjustment will ensure that tariff rebasing coincides with lower electricity consumption during winter, allowing for smoother financial transitions and more balanced electricity pricing throughout the year.
Nepra, along with the Power Division, has expressed support for the proposal, and preparations are underway to align the legal and regulatory framework. Officials explained that the proposed shift to January will help mitigate affordability issues by reducing electricity costs during the peak summer months.
The rebasing process, previously initiated on July 1 each year, has often led to increased financial pressure on consumers, contributing to public dissatisfaction. The government hopes that by changing the timeline, it will ensure a more predictable and consumer-friendly electricity pricing structure, while maintaining alignment with IMF negotiations.
