Islamabad

Pakistan’s federal cabinet has given approval for a hike of PKR 5.72 per unit in the basic power tariff, as reported by sources, familiar with the matter. The decision, conveyed through a circulation summary, awaits formal submission to the National Electric Power Regulatory Authority (NEPRA) for uniform implementation across the country. The Power Division will formally apply to NEPRA for the tariff adjustment, scheduled to take effect from July 1, 2024, for the fiscal year 2024-2025. This increase will elevate the average basic electricity tariff from PKR 29.78 to PKR 35.50.

NEPRA’s report highlighted significant challenges within Pakistan’s power sector, noting a staggering PKR 403 billion loss in the Financial Year 2022-23. Factors contributing to this financial strain include inadequate recovery rates and high transmission losses among the country’s nine distribution companies, including K-Electric.

The report also pointed out that these companies did not procure electricity as per their quotas, potentially exacerbating loadshedding issues across various regions. Earlier in June, NEPRA had announced a nearly 20% increase in the uniform national tariff, aiming to generate approximately PKR 485 billion in additional revenue for the 10 former Wapda electricity distribution companies (Discos) during the upcoming fiscal year.