ISLAMABAD: The prices of electricity have been increased across the country through the mechanism of the quarterly adjustment. The National Electric Power Regulatory Authority (NEPRA) has issued a decision after the hearing of the quarterly adjustment, in which it has been decided to increase the electricity prices by 35 paisas per unit.
According to the NEPRA decision, the adjustment will apply from October to December 2025. The increase in the prices of electricity will be applicable from March to May 2026. The increase in the prices of electricity will add a burden of PKR 8.67 billion on the consumers of electricity.
It is worth mentioning here that the prices of electricity were also increased through the first quarterly adjustment of the current fiscal year. In the July to September 2025 quarterly adjustment, the prices of electricity were increased by 33 paisa per unit. The adjustment applied from December 2025 to February 2026.
Good news: govt plans major changes in electricity, gas prices
Earlier, there is good news for low-income earners who are concerned about high electricity and gas bills. The majority of Pakistan’s population is worried about these rising utility costs, with many individuals facing bills that exceed their income, creating significant financial strain. However, a change is on the horizon.
The federal government is preparing to implement a major overhaul of the electricity and gas tariff system. According to sources, a proposal is being considered to shift from the current consumption-based pricing model to an income-based pricing system.
Under this proposed model, subsidies would be allocated based on household income rather than the amount of energy consumed. This change aims to transform the existing pricing structure, which links rates solely to consumption.
With the new system, subsidies would be distributed proportionately according to a household’s income. This means that financial assistance will be targeted toward eligible consumers, while higher-income households would pay closer to the actual cost of energy.
These proposed reforms are reportedly connected to the ongoing negotiations with the International Monetary Fund (IMF). Pakistan is currently in discussions with the IMF to review electricity tariffs, with the fund emphasizing that any adjustments should not burden low- and middle-income groups.
