The federal government on Friday decided to extend relief to electricity consumers by increasing the tariff differential subsidy for three months, from April to June.

The government has submitted an application to the National Electric Power Regulatory Authority (Nepra) for approval, which is set to be heard on April 4.

Under this move, consumers of distribution companies (Discos) and K-Electric (KE) will receive a relief of Rs1.71 per unit, applicable to all categories except lifeline consumers.

This decision follows the International Monetary Fund’s (IMF) recent approval for a reduction in electricity tariffs. The global lender had permitted a decrease of Rs1 per unit in power prices, benefiting all electricity consumers.

The relief amount will be adjusted using revenue collected from a levy imposed on captive power plants, particularly targeting gas usage in these industrial units.

Meanwhile, the government is also working on a broader relief package for electricity consumers, which will be announced after securing approval from the IMF.

IMF, Pakistan finalise staff-level deal for $2.3bn funding

On March 26, Pakistan and the International Monetary Fund (IMF) have reached a staff-level agreement on the first economic review under the Extended Fund Facility (EFF), securing a $1 billion tranche subject to board approval.

Additionally, a new $1.3 billion arrangement has been finalized under the Resilience and Sustainability Facility (RSF), bringing the total financing package to $2.3 billion.

In a statement issued on Wednesday, the IMF acknowledged Pakistan’s efforts in stabilizing its economy despite global headwinds over the past 18 months.

The Fund noted improvements in fiscal discipline, declining inflation, and stabilisation of external balances.

However, it cautioned that geopolitical risks, fluctuating commodity prices, and climate-related challenges continue to pose significant threats to economic recovery.