ISLAMABAD: Pakistan is likely to witness an increase of 48 paisa per unit in electricity tariffs for one month under the monthly fuel price adjustment mechanism.
The Central Power Purchasing Agency (CPPA) submitted a petition to the National Electric Power Regulatory Authority (NEPRA) requesting approval for the adjustment, and NEPRA is scheduled to hear the petition on Thursday.
Electricity generation mix and costs
According to CPPA data, Pakistan generated 8.487 billion units of electricity in December, of which 8.208 billion units were supplied to distribution companies (DISCOs). The average per-unit cost of electricity stood at Rs 9.62 for the month. Hydel sources contributed 18.07 percent of total generation, while local coal accounted for 13.99 percent, and imported coal made up 10.13 percent. Natural gas-based power represented 11.20 percent, and imported LNG contributed 17.24 percent. Nuclear energy supplied the largest share at 25.05 percent, CPPA added.
Government relief and economic context
Earlier this month, the federal cabinet approved an Economic Coordination Committee (ECC) decision to provide relief to consumers regarding the Off-Grid (Captive Power Plant) Levy. The cabinet meeting, chaired by Prime Minister Shehbaz Sharif at the Prime Minister’s House, emphasized measures to ease electricity costs for households and businesses.
The prime minister highlighted that Pakistan’s gross domestic product (GDP) recorded encouraging growth in the first quarter (July–September) of the current fiscal year. He added that government policies had successfully guided the economy away from the brink of default and set the country on a path toward stability.
As Pakistan awaits NEPRA’s decision on the tariff adjustment, the balance between energy affordability and sustainable power sector financing remains a key challenge for policymakers.
