The government has assured the International Monetary Fund (IMF) of increasing electricity prices while deciding to limit subsidies to Rs830 billion in the upcoming budget, aiming to maintain fiscal discipline.
According to details, Pakistan has informed the IMF that timely tariff adjustments will be made to mitigate the impact of the recent Gulf conflict and the resulting shocks to the global energy market. The government believes these measures are necessary to manage fluctuations in energy prices.
Under the $7 billion Extended Fund Facility agreed with the IMF, a new base tariff will be implemented from January 15, 2027, in line with structural benchmarks aimed at strengthening reforms in the energy sector.
Meanwhile, the privatization of power distribution companies, including IESCO, GEPCO, and FESCO, has once again been delayed, with expectations now that the process will be completed in early 2027.
