ISLAMABAD: In a significant development with wide-ranging implications for consumers nationwide, the National Electric Power Regulatory Authority (NEPRA) announced on Monday its approval of a tariff increase of Rs 3.28 per unit.
This uptick in electricity prices is part of the quarterly adjustment and will be applicable from October 1, 2023, through March 31, 2024. NEPRA officially conveyed its decision to raise electricity tariffs through a formal notification.
It’s important to highlight that this adjustment applies to all electricity consumers across the board and is not limited to any specific category of consumers.
Pakistan’s Inflation Surges To 31.4% In September Amid Soaring Energy Costs
Meanwhile, Pakistan’s year-on-year Consumer Price Index (CPI) inflation rate has surged to 31.4%, rising from 27.4% in August, as indicated by data from the Pakistan Bureau of Statistics (PBS). Soaring energy costs primarily attribute to this increase.
This inflation uptick comes after four months of relative stability, following the government’s decision to raise fuel prices in alignment with conditions set by the International Monetary Fund (IMF) for an ongoing $3 billion bailout program. Pakistan is navigating a challenging path to economic recovery under a caretaker government after the IMF-approved loan program in July averted a sovereign debt default but introduced conditions that complicated efforts to control inflation.
On a month-on-month basis, inflation in September rose by 2%, compared to a 1.7% increase in August. During the first quarter of the current fiscal year, average inflation stood at 29%, with a quarterly average of 29.04% for 1QFY24 compared to 25.11% in 1QFY23.
The CPI inflation in urban areas increased to 29.7% year-on-year in September 2023, compared to 25.0% in the previous month and 21.2% in September 2022. On a month-on-month basis, it rose to 1.7% in September 2023, up from 1.6% in the previous month and a decrease of 2.1% in September 2022.
In rural areas, CPI inflation increased to 33.9% year-on-year in September 2023, compared to 30.9% in the previous month and 26.1% in September 2022. On a month-on-month basis, it increased to 2.5% in September 2023, up from 1.9% in the previous month and 0.2% in September 2022.
Market expectations were largely in line with these figures. While a lower base set in September 2022, mainly due to a one-time power tariff adjustment, influenced the September 2023 CPI reading, some analysts projected it at 30.6%.
