Pakistan is taking serious steps to reduce electricity prices
Over the past year, Pakistan has witnessed a tremendous rise in electricity prices affecting household scales throughout the country. The old and current price of electricity is discussed here, along with the increase percentage and future trends in price movements.
Current and Historical Electricity Prices
Electricity tariffs introduced by the government of Pakistan have been revised multiple times since it became law, and the current adjustments came into effect among consumers June 1, 2024 for residential ones. The following are side-by-side comparisons on old, current, and prospective electricity tariffs applicable in various usage categories.
| Usage (units per month) | Old Tariff (up to June 2024) | New Tariff (July 2024 – Dec 2024) | Projected Tariff (from Jan 2025) |
|---|---|---|---|
| 1-100 | 16.48 | 37.38 | 32.12 |
| 101-200 | 22.95 | 45.15 | 39.94 |
| 201-300 | 27.14 | 50.17 | 44.97 |
| 301-400 | 32.03 | 56.73 | 51.52 |
| 401-500 | 35.24 | 59.76 | 54.55 |
| 501-600 | 36.66 | 61.70 | 56.50 |
| 601-700 | 37.80 | 63.24 | 58.03 |
| Above 700 | 42.72 | 69.27 | 64.06 |
| Usage (units per month) | Old Tariff (up to June 2024) | New Tariff (July 2024 – Dec 2024) | Projected Tariff (from Jan 2025) |
|---|---|---|---|
| 1-100 | 7.74 | 19.75 | 14.54 |
| 101-200 | 10.06 | 22.71 | 17.50 |
Analysis of Price Increases
For household consumers, the base tariff for electricity has been increased up to 51% from July 1, 2024. Tariff revisions form part of the governmental effort that shapes its management of the financial requirements of the power sector. However, such increases are timely when the economic challenges for consumers have been rife.
Future Projections
The government has indicated that these rates will be reduced starting January 2025. The anticipated decrease is expected to bring some relief to consumers, with projected tariffs significantly lower than the peak rates of mid-2024.
Conclusion
The adjustments in electricity tariffs reflect efforts to put the power sector on a financially sound footing in a way which is moderately affordable to consumers. In such an adjustment period, getting consumers to understand how changes impact household budgets will be essential to prepare people for higher costs.