In a bid to boost electric consumption, the federal government is planning to cut power tariff by up to Rs8 per unit.
However, the proposed “Winter Package 2024” is presently in limbo due to contradictory claims about the International Monetary Fund’s (IMF) approval.
According to officials, the government plans to lower electricity rates for all customers by Rs 7-8 per unit between December 1, 2024, and April 30, 2025. This is in an effort to boost domestic demand and offset a sharp decline in electricity consumption, which has dropped by 10–12% in the industrial sector alone.
A move toward off-grid systems and hefty tariffs are blamed for this drop.
IMF officials and government representatives from the Finance Division and Power Division held an online discussion where they discussed the anticipated rise in consumption and its effects on the economy.
The IMF has conditionally authorized the package for three months, according to some officials, but talks are still going on, according to others.
The suggested package, which has a potential fixed charge of Rs 20–25 per unit, is mainly intended for industrial users.
However, residential users may be excluded from benefits, and the government is considering reducing subsidies for households to fund this initiative.
The Ministry of Finance is delaying final clearance until it gets the nod from the global lender. Meanwhile, the prime minister is urging quick clearance in order to improve industrial operations. The package would be submitted to the National Electric Power Regulatory Authority (Nepra) prior to implementation if approved.
