A short-term power tariff hike in Pakistan seems likely as the National Electric Power Regulatory Authority (NEPRA) conducted a public hearing on a federal government request to raise electricity prices by 45 paisas per unit for three months.

The proposed increase falls under the first quarterly adjustment for the current fiscal year.

The hearing, chaired by NEPRA Chairman Waseem Mukhtar, reviewed applications from distribution companies (Discos) and K-Electric seeking a total of Rs 8.41 billion under the first quarterly adjustment. The final decision will be made after NEPRA’s technical review of the submitted data, with recommendations forwarded to the federal government.

Consumers voiced strong objections during the session, reminding the authority that the Prime Minister had recently announced a Rs 7.41 per unit reduction for three months. They argued that a fresh increase would contradict the government’s relief efforts, especially when the circular debt is already rising despite ongoing subsidies for industrial and agricultural sectors.

NEPRA Member Rafiq Sheikh noted that the current structure of the power sector makes it difficult to eliminate circular debt, pointing out inefficiencies and mounting financial burdens. Industrial representatives also highlighted that they are already paying a surcharge of Rs 3.23 per unit due to circular debt and fear the new hike will further hurt competitiveness.

NEPRA officials acknowledged that line losses, theft, and poor recovery remain major challenges. The Power Division informed the authority that higher losses and lower recovery rates had worsened the financial gap. The regulator concluded the hearing and stated that it will issue its final decision after evaluating the figures in detail.