Islamabad, April 10, 2025: The National Electric Power Regulatory Authority (NEPRA) has approved a Rs1.71 per unit reduction in electricity tariffs across the country, following a government decision to pass on relief generated through lower Petroleum Development Levy (PDL) collections.
The price cut will be effective from April to June 2025 and will apply to all domestic and industrial consumers of XWDISCOs and K-Electric — excluding lifeline consumers.
The approval follows an April 4 hearing and is in line with an earlier announcement by Prime Minister Shehbaz Sharif, who had pledged significant reductions in electricity tariffs as part of Pakistan’s commitments under its ongoing program with the International Monetary Fund (IMF). The PM had announced that tariffs for domestic and industrial users would drop by Rs7.41 and Rs7.69 per unit, respectively.
In its decision, NEPRA stated that the relief does not impact the authority’s determined tariff as it is backed by a subsidy derived from anticipated PDL collections. The Ministry of Energy had estimated that around Rs58.6 billion would be collected in PDL over the next 3.5 months, which would be used to finance the tariff differential.
“The Authority has no objection to the motion, as it does not impact Nepra’s determined tariff,” the regulator noted. “Accordingly, the request… to provide [an] additional subsidy of Rs1.71/kWh to all consumers of XWDISCOs and K-Electric (except lifeline consumers) for the period from April 2025 to June 2025 is hereby approved.”
NEPRA’s notification also confirmed that the federal cabinet had endorsed the proposal to ensure that the benefit would reflect in consumer bills starting from April 2025.
Under the revised pricing, domestic electricity rates — previously at Rs48.70 per unit and already lowered to Rs45.05 — have now been further slashed by Rs7.41 per unit. Similarly, industrial tariffs have been cut from Rs58.50 per unit in June 2024 to Rs48.19, with an additional Rs7.69 per unit relief now in effect.
The move is expected to provide significant financial relief to consumers while maintaining the broader fiscal targets agreed upon with the IMF.
