Pakistan, May 8 -- Despite hopes for a reduction in power bills, the federal government has proposed only a marginal cut in base electricity tariffs for the upcoming fiscal year 2025-26. The suggested revisions-based on seven different scenarios-indicate that electricity rates may decrease by as little as 30 paisa and at most by Rs2.25 per unit, offering no major relief to consumers.
If the exchange rate remains stable at Rs280/USD, the average base tariff could fall from Rs27 to Rs24.75 per unit. However, if the exchange rate hits Rs300, the decrease will be just 30 paisa, mainly due to lower capacity payments. The report also highlights that the average power purchase price (PPP) will remain significantly above fuel costs-ranging between...