Government Pushes for Rs1.71 Per Unit Cut in Electricity Prices

On Friday, the federal government asked the National Electric Power Regulatory Authority (Nepra) to reduce electricity rates by Rs1.71 per unit across Pakistan, including Karachi, according to Dawn.

The government’s filing to Nepra states that this price drop will be covered by boosting subsidies.

Nepra will review the proposal on April 4, and if approved, the new rates could apply from April to June 2025, affecting all power companies, including K-Electric.

This comes after rumors in the media hinted at a bigger Rs8 per unit cut being announced by the prime minister in his Pakistan Day speech on March 23, but no such announcement happened.

Previously, the IMF agreed to a small Re1 per unit reduction for industrial captive power plants, though a larger cut wasn’t possible then.

During IMF talks from March 4-14, Pakistan suggested an extra Rs2 per unit decrease, thanks to savings from reworked deals with independent power producers.