The government is considering reducing electricity prices by up to Rs8 per unit for three months under a proposed winter package.
According to media reports, the winter relief is expected to run from December to February 2025, though an alternate proposal extends it until April. However, whatever the government decides about providing relief to the burdened consumers, IMF approval is necessary.
Reports suggest that the finance ministry officials have discussed the package with the IMF and submitted a detailed report to address the Fund’s inquiries.
If the IMF consents, the package will go to the National Electric Power Regulatory Authority (NEPRA) for clearance and then to the federal cabinet for final authorization.
Three approaches are under review: offering relief to all consumers, focusing solely on industrial users for a potential cut of up to Rs20 per unit, or a mixed approach favouring industry to drive demand.
The package, aimed at encouraging higher electricity consumption, is being developed in coordination with the Power Division, Ministry of Finance, and other departments.
