Government withdraws electricity tariff increase for low-consumption consumers.

The federal government has announced the withdrawal of the recent increase in electricity tariffs for consumers using up to 200 units per month. The decision, approved by the prime minister and the cabinet, aims to provide relief to low-consumption consumers from July to September 2024.

To ensure this relief, the government will allocate a Rs50 billion subsidy. This move reverses the federal cabinet’s previous decision on July 4 to increase the basic electricity tariff by up to Rs7.12 per unit, which had taken effect on July 1, 2024.

The earlier tariff hike included a Rs3.95 per unit increase for protected consumers using up to 100 units and a Rs4.10 per unit increase for those using 101 to 200 units.

Additionally, in line with conditions set by the International Monetary Fund (IMF), the federal cabinet had also approved a significant increase in the electricity base tariff, which was expected to exacerbate the cost of living crisis and impact the cost of doing business.

This latest decision to withdraw the tariff hike is a measure aimed at easing the financial burden on the country’s lower-income households.