Islamabad, March 27, 2025: The International Monetary Fund (IMF) has approved a Rs1 per kilowatt-hour reduction in electricity tariffs for all consumers in Pakistan, providing much-needed relief amid rising energy costs.
The tariff cut will be financed through revenue generated from a levy imposed on captive power plants using natural gas, according to an IMF statement. This initiative is part of broader energy sector reforms aimed at easing the financial burden on consumers.
Official sources estimate that the reduction could translate into savings of up to Rs100 billion nationwide. A household consuming 500 units of electricity per month would save Rs500 under the new tariff structure.
The move follows a staff-level agreement between Pakistan and the IMF, unlocking $1 billion under the Extended Fund Facility (EFF). The IMF noted that Pakistan’s inflation rate is now at its lowest since 2015, with further economic improvements expected.
Pakistan expects the IMF’s executive board to approve the second tranche of $1 billion under the EFF, along with a new $1.3 billion Resilience and Sustainability Facility (RSF), by the end of April or early May. However, the RSF funds will be disbursed over 28 months and subject to the implementation of 13 conditions, including a carbon levy.
This development signals growing confidence in Pakistan’s economic recovery efforts while providing immediate relief to power consumers.
