ISLAMABAD – The International Monetary Fund (IMF) has approved a reduction of Re1 per unit in electricity tariffs, providing relief to all consumers.
This relief will be funded through revenue generated from the levy on captive power plants, which were previously subjected to a gas consumption levy.
The government is also working on an electricity relief package for consumers, which will be announced after IMF approval.
Meanwhile, under the Staff-Level Agreement (SLA) between Pakistan and the IMF, a new carbon levy will be introduced. Alongside the reduction in electricity rates, there has also been an agreement to increase water prices and open the automobile sector for global trade.
The prime minister is expected to announce an average reduction of Rs. 7 per unit in electricity tariffs in the coming days, effective from April 1, 2025. Implementation of carbon levy, water price hikes, and automotive sector reforms is expected from July 1, 2025.
It is noteworthy that under this agreement, Pakistan has gained access to $1 billion under the Extended Fund Facility (EFF).
In its statement, the IMF noted that inflation in Pakistan is at its lowest since 2015, and the country’s economic situation has improved, with expectations for further recovery.
Under this program, Pakistan’s total received amount will reach $2 billion.
