Pakistan's Power Tariff Respite: PM Shahbaz Sharif Announces Delay Until October

Prime Minister Shahbaz Sharif announced that Pakistan will delay raising power tariffs until October, providing temporary relief for households. This decision is part of the country's agreement with the IMF to manage its power sector debt. The respite will benefit 94% of domestic households facing high summer temperatures.

Prime Minister Shahbaz Sharif has announced that Pakistan will delay raising power tariffs until October, offering much-needed relief to households impacted by the recent hikes. This decision comes as part of the country's ongoing agreement with the International Monetary Fund (IMF) aimed at resolving debt issues within Pakistan's power sector.

Poor and middle-class households have been feeling the brunt of the IMF's bailout, which mandated a series of tariff increases over the past year. Sharif confirmed that the hiatus in raising tariffs would last for three months—July, August, and September—aligning with the anticipated reduction in electricity consumption as temperatures drop in October.

Annual power usage in Pakistan is projected to decline for the first time in 16 years, attributed to elevated tariffs. Sharif emphasized that this delay would alleviate some of the financial burdens for 94% of domestic households during the peak summer months. Additionally, Islamabad plans to enter a new three-year IMF program to further stabilize the economy, despite concerns over high taxes potentially inciting public discontent.

(With inputs from agencies.)