Electricity tariffs in Pakistan reached unprecedented levels during Prime Minister Shehbaz Sharif’s tenure, with an increase of PKR 25.76 per unit over two and a half years, including a permanent surcharge. According to private TV reports, this marks the highest tariff hike under any Pakistani prime minister.
Details reveal a historic PKR 22.53 per unit hike in the base tariff during the tenure, alongside a permanent surcharge of PKR 3.23 per unit. Combined, these charges resulted in an unprecedented rise in electricity costs for consumers. Over the two-and-a-half-year period, the additional burden on electricity consumers exceeded PKR 2 trillion.
Key Increases During the Tenure:
July-October 2022: Base tariff surged by PKR 7.91 per unit.
July 2023: Base tariff increased by PKR 7.50 per unit, with a permanent surcharge of PKR 3.23 per unit imposed.
July 2024: Base tariff saw a further rise of PKR 7.12 per unit.
These hikes were implemented with cabinet approval, and consumers also faced the impact of quarterly and monthly adjustments in their bills.
Government’s Current Approach:
In light of the historic increases, the government is now exploring options to reduce tariffs. Proposed measures include revisiting agreements with Independent Power Producers (IPPs) and passing on the benefits of revised contracts to consumers. Additionally, the government is reviewing taxes levied through electricity bills to provide relief.
This shift reflects the government’s recognition of the economic strain on electricity consumers and its efforts to mitigate the impact of rising energy costs.
