Islamabad, March 6, 2025 – The National Electric Power Regulatory Authority (NEPRA) has officially announced a reduction in electricity tariffs across Pakistan, providing much-needed relief to consumers burdened by high power costs.
This adjustment has been made under the monthly Fuel Charge Adjustment (FCA), reflecting the fluctuating fuel costs used for power generation.
As per the latest notification from NEPRA, electricity consumers in Karachi, served by K-Electric (KE), will experience a reduction of Rs3 per unit in their power bills. Meanwhile, electricity tariffs for the rest of the country have been lowered by Rs2.12 per unit. This reduction will be reflected in electricity bills for the month of March, offering relief to millions of consumers.
The tariff cut for K-Electric consumers corresponds to the FCA adjustment for December 2024, whereas the reduction for consumers in other regions is based on the January 2025 adjustment. The move is expected to slightly ease the financial strain on households and businesses that have been struggling with rising electricity costs.
Unaffordable electricity tariffs have been a major factor in Pakistan’s economic struggles, leading to industrial slowdowns and public discontent. With inflation reaching record highs and the economy contracting twice in recent years, electricity affordability has remained a key concern for both businesses and households. Many industries have faced closures due to unsustainable energy costs, impacting employment and overall economic productivity.
The latest FCA adjustment applies to most categories of electricity consumers, but certain groups remain excluded from the relief. These include lifeline consumers, domestic users consuming up to 300 units per month, electric vehicle charging stations, prepaid customers, and agricultural electricity connections. However, domestic users with Time of Use (ToU) meters will benefit from the reduced tariffs, regardless of their electricity consumption levels.
The FCA mechanism adjusts electricity prices in response to fuel cost variations, ensuring that power rates reflect real-time market conditions. Lower fuel prices lead to reduced electricity costs, while higher prices result in increased tariffs. NEPRA has also instructed power distribution companies (Discos) to strictly adhere to court orders regarding the FCA’s implementation.
In recent years, Pakistan has been compelled to raise electricity tariffs under its agreement with the International Monetary Fund (IMF) as part of broader economic stabilization efforts. The IMF has consistently highlighted the power sector’s liquidity crisis, with mounting arrears and frequent electricity shortages creating additional financial strain. These arrears, stemming from unpaid bills and subsidies, were a key issue during Pakistan’s negotiations with the IMF before finalizing the bailout deal.
The reduction in electricity tariffs, although a temporary relief, is expected to provide some breathing room to consumers grappling with high living costs. However, long-term solutions are still needed to ensure the sustainability and affordability of Pakistan’s electricity sector.