ISLAMABAD — Electricity consumers are set to face higher bills in the upcoming fiscal year as the Senate Standing Committee on Finance has approved the imposition of additional surcharges aimed at servicing Pakistan’s growing circular debt.
The decision was made during a committee session chaired by Senator Saleem Mandviwalla, where officials from the Ministry of Energy briefed lawmakers on the rationale and structure of the new surcharges. The move is aligned with the government’s commitments under the International Monetary Fund (IMF) programme.
According to the briefing, current electricity surcharges range from Rs2.83 to Rs3.23 per unit. The newly passed provisions in the Finance Bill authorize the Ministry of Energy to not only retain these charges but also increase them as needed to meet repayment obligations.
Officials disclosed that the previous cap on surcharges is being removed, granting the ministry expanded authority to raise rates in the future. This flexibility is seen as necessary to ensure the government can meet its repayment obligations on a Rs1.27 trillion commercial bank loan obtained to plug gaps in the power sector’s finances.
The surcharges, now officially sanctioned by the Senate committee, will be used to cover interest payments and principal on circular debt, a long-standing structural issue that continues to plague Pakistan’s energy supply chain.
The decision was passed with unanimous support from the committee members, paving the way for the Ministry of Energy to issue formal notifications ahead of the new fiscal year. The impact will likely be felt across all categories of consumers, further intensifying inflationary pressures for households and industries already grappling with high energy costs.
