The federal government on Friday has requested Nepra to reduce electricity rates by Rs1.71 per unit nationwide, including Karachi.
Initially, it was expected that the prime minister would announce an Rs8 per unit reduction in his March 23 speech, but no such relief was announced.
The delay in the reduction in electricity tariffs is due to the IMF withholding approval under its $7 billion Extended Fund Facility, allowing only a Re1 per unit reduction tied to levies on industrial captive power plants.
During the March 4-14 review talks, the government suggested a Rs2 per unit cut based on savings from renegotiated contracts with independent power producers.
Authorities also considered raising the petroleum levy on petrol and diesel by Rs10 per litre to redirect funds for electricity relief, which could further reduce tariffs by Rs2-2.50 per unit.
The government’s proposal to Nepra suggests implementing the change from April to June 2025, with a hearing scheduled for April 4.
Meanwhile, Nepra is also reviewing annual base tariff revisions requested by power distribution companies.
The source said the IMF has reportedly declined to approve a tax reduction on real estate transactions but may allow a 2% reduction in federal excise duty on first-time property transactions in the upcoming budget.