The International Monetary Fund (IMF) has granted approval for a reduction in electricity tariffs, providing relief to consumers across Pakistan.

According to sources, the IMF has allowed a Rs. 1 per unit reduction in power tariffs, offering financial relief to all electricity consumers. This adjustment will be funded through revenue generated from the levy imposed on captive power plants that use gas.

The government is also working on a broader electricity relief package, which will be announced after obtaining formal approval from the IMF. In addition to reducing electricity rates, the staff-level agreement (SLA) between Pakistan and the IMF includes new economic measures such as introducing a carbon levy, increasing water prices, and opening up the automobile sector for global trade.

Prime Minister Shehbaz Sharif is expected to announce a reduction of up to Rs. 7 per unit in electricity tariffs in the coming days, with implementation likely from April 1, 2025.

Meanwhile, the newly proposed carbon levy, water price hikes, and automotive sector reforms are set to take effect from July 1, 2025. Under the IMF program, Pakistan has already secured access to $1 billion under the Extended Fund Facility (EFF) agreement.

The IMF also stated that inflation in Pakistan has reached its lowest level since 2015, and the country’s economic stability is improving, with further progress expected in the coming months. With the approval of the current agreement, Pakistan’s total funding from the program will reach $2 billion.