Pakistan's government is signaling a new power tariff package that could add Rs1.20 per unit to consumer bills in August, despite a recent decline in electricity demand.
The move comes as the National Electric Power Regulatory Authority (Nepra) has publicly questioned the operational performance of power sector entities, criticizing excess costs and inefficiencies.
The proposed adjustment reflects the ongoing challenge of passing through fuel costs to consumers, a recurring issue in Pakistan's energy market.
With demand softening, the timing of the hike raises questions about the sector's ability to balance supply and cost recovery without further straining household budgets.
Nepra's scrutiny of power sector entities adds pressure on generators and distributors to improve efficiency.
The regulator's criticism suggests that future tariff decisions may be tied more closely to performance metrics, potentially impacting the financial outlook for key players in the market.