IMF approves Rs1/unit cut in electricity tariffs

The International Monetary Fund (IMF) has approved a Rs1 reduction in electricity tariffs, offering relief to consumers in the basic tariff for each unit of electricity. This adjustment aims to alleviate electricity costs for all users.

The funds for this relief will be generated through a levy imposed on the gas consumption of captive power plants.

Meanwhile, the government is working on a broader relief package for electricity users to provide additional support.

This Rs1 per kilowatt-hour tariff reduction is projected to lessen the financial burden on consumers by approximately Rs100 billion overall. For an average household consuming 500 units monthly, the new rates would bring a Rs500 decrease in their electricity bill.

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The IMF’s approval comes shortly after Power Minister Awais Leghari emphasized the government’s intention to lower power tariffs, assuring that such measures would be implemented at the “right time.”