Govt announces electricity price cut of up to Rs1.23 per unit

(Web Desk): Electricity consumers in Pakistan are receiving relief as the government announces a reduction in electricity prices by up to Rs1.23 per unit.

A notification stated that consumers of state-run distribution companies (DISCOs) will benefit from Rs1.22 price cut per unit, while K-Electric users will see a slightly higher reduction of Rs1.23. This price reduction is due to the monthly fuel price adjustment.

For DISCO consumers, the price cut will apply to the fuel charge adjustment (FCA) for December, while K-Electric users will see the reduction in their November FCA. The changes will appear on February’s electricity bills.

The announcement follows remarks earlier in the day from Prime Minister Shehbaz Sharif, who confirmed that the International Monetary Fund (IMF) had no objections to lowering electricity prices. During a federal cabinet meeting, he shared details of his recent visit to Dubai, where he met IMF Managing Director Kristalina Georgieva. The Prime Minister said Georgieva had expressed that the IMF would be open to reviewing Pakistan’s electricity tariff reduction plan if it was formally presented.

Shehbaz Sharif explained that in his meeting with the IMF managing director, he discussed the challenges facing Pakistan’s power sector and emphasized that reducing production costs was key to helping industries grow and boosting the economy. He added that the IMF responded positively to his proposal and invited Pakistan to submit its plan for cutting electricity prices.