Govt considers dropping power tariff hike for protected consumers

The federal government has proposed to withdraw the recent electricity price hike for consumers using up to 200 units per month, according to sources.

Prime Minister Shehbaz Sharif has directed the federal cabinet to urgently approve the summary of this proposal, aimed at providing relief to consumers using up to 200 units per month from July to September 2024.

The federal government will provide a subsidy of approximately Rs50 billion to give relief on the tariffs.

Previously, the federal cabinet had approved an increase of up to 7.12 rupees per unit in the base electricity tariff, which was set to take effect from July 1, 2024.

PM Shehbaz has called for a federal cabinet meeting to be held tomorrow.

The meeting will focus on approving the relief measures for electricity consumers and reviewing the overall economic situation.

Moreover, the proposal aims to alleviate the financial burden on low and middle-income households, ensuring that essential electricity services remain affordable for all segments of the population.