Islamabad, Mar 3, 2025: The federal government has decided to scrap its proposal to revise electricity tariffs annually from January 1 instead of the usual July 1 timeline.
This decision came after the International Monetary Fund (IMF) declined to endorse the plan.
On January 17, the Economic Coordination Committee (ECC) gave the green light to the Power Division’s recommendation to shift financial burdens onto consumers during winter when electricity usage is lower.
While the Finance Ministry did not oppose the move, it suggested consulting key development partners such as the IMF, World Bank, and Asian Development Bank (ADB) before proceeding.
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The Power Division justified the proposal by highlighting that tariff adjustments typically coincide with peak Fuel Charges Adjustments (FCAs) during summer, leading to increased public dissatisfaction.
By changing the schedule, the aim was to maintain price stability in the electricity sector.
However, after discussions with the IMF, the proposal was put on hold.
Development partners advised the government to prioritize ongoing power sector reforms rather than altering the existing tariff revision mechanism.
As a result, the current rebasing schedule will continue as before.
