ISLAMABAD: As energy costs ease and electricity demand rebounds, Pakistan’s power regulator is considering a reduction of over Rs2 per unit in basic electricity tariffs starting July 2025, potentially delivering relief worth up to Rs400 billion to consumers, according to regulatory officials.
During a public hearing led by NEPRA Chairman Waseem Mukhtar, the National Electric Power Regulatory Authority (NEPRA) reviewed projections from the Power Division for the 2025–26 fiscal year. These projections suggest that the current power purchase price of Rs27 per unit could fall to around Rs24.75 per unit, thanks to declining fuel prices and improved system efficiency.
The Ministry of Energy expects the tariff cut could drive a 2.8% to 5% increase in electricity consumption, especially from industrial users rejoining the grid.
The pricing forecasts are based on several macroeconomic assumptions, including global commodity trends, domestic inflation, and exchange rate fluctuations. For FY2025-26, the government estimates that average consumer tariffs could range between Rs6.8 and Rs8.1 per unit, though total fuel costs might still rise to Rs1.28 trillion, depending on market conditions.
The Pakistani rupee is projected to average around Rs300 against the US dollar during the fiscal year. Officials noted that electricity demand had already surged 28% in April, following earlier tariff reductions that helped bring back industrial users.
“If prices remain stable and affordable, demand will keep growing,” one official stated, adding that this outlook aligns with the IMF’s 3.6% GDP growth forecast for 2026.
The potential tariff cut signals a shift toward greater affordability and system sustainability, as the government seeks to balance consumer relief with fiscal prudence.
