The government assured the IMF of increasing the price of electricity and gas.

In the ongoing budget negotiations with the IMF, the government gave a detailed briefing on the energy sector and clearly stated that electricity and gas tariffs will be increased, except for protected consumers. NEPRA’s quarterly tariff adjustments and monthly fuel charges adjustments will also be implemented on time and the policy of passing on the burden of global energy prices to consumers will continue.

Several targets have been set for the coming months and years. Agreements regarding arrears and penalties with IPPs are to be completed by June 2026. The increase in the basic electricity tariff will be effective from January 2027. The increase in circular debt in the fiscal year 2027 will be limited to Rs 300 billion and electricity subsidy will be kept at a maximum of Rs 830 billion, i.e. 0.6 percent of GDP. The privatization of IESCO, GEPCO and Faisalabad Electric Supply Company is to be completed by the beginning of 2027 and the biggest promise is that the circular debt of the power sector will be reduced to zero by 2031.

The government has also prepared audited data on gas circular debt and, like electricity, has assured to make the gas sector circular debt public on a quarterly basis.

For the common man, all this simply means that electricity and gas bills will increase further in the coming months because the government has given this promise in writing to the IMF.