ISLAMABAD – A sigh of relief for inflation-hit Pakistanis as prices of electricity rates are expected to cut as the government is negotiating with the International Monetary Fund.
In a statement, Federal Minister for Energy, Awais Leghari mentioned reducing electricity prices by up to Rs50 per unit. He revealed that talks with the International Monetary Fund (IMF) regarding captive power plants are moving in right direction, and that the government is working toward lowering electricity costs by up to Rs12 per unit.
Speaking at National Assembly’s Standing Committee, Leghari shared that talks with IMF about captive power plants are nearing completion, with matter expected to be resolved by the end of this month. He confirmed that a review of eight power plants is underway, as the government aims for cost reduction and efficiency improvements.
Delving into details, Laghari added that electricity cost for domestic consumers has already become Rs4 cheaper, and the government would next focus on revising the return on equity for government-owned plants.
The government remains committed to reducing electricity costs for consumers and addressing the challenges in the energy sector, with further developments expected soon.
In a similar development, International Monetary Fund (IMF) rejected Islamabad’s request to cut sales tax on electricity bills, citing a need to meet fiscal targets under current loan agreement. Ministry of Energy sought tax reduction to ease consumer burdens, but IMF emphasized that such exemptions could harm tax collection goals.
As of 2025, 18 percent Goods and Services Tax (GST) is applied twice on electricity bills, while the government agreed to introduce a levy on captive power plants, which will be phased in gradually to comply with IMF conditions.
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