The federal government’s electricity relief package, which delivered significant savings of Rs7.41 per unit for domestic and industrial consumers, is scheduled to expire by the end of July 2025. With no extension in sight, electricity bills in Pakistan are expected to rise sharply starting in August.
What Was the Electricity Relief Package?
Announced in April 2025 by Prime Minister Shehbaz Sharif, the electricity relief initiative was a key part of the PML-N’s election manifesto, fulfilling a promise made by party leader Nawaz Sharif. The timing, just before Eid, helped citizens cope with rising inflation and energy costs.
Breakdown of the Rs7.41 Per Unit Relief
The total relief was distributed across various components:
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Rs1.90/unit – Tariff reduction for April to June (Q2)
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Rs1.55/unit – Tariff reduction for May to July (Q3)
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Rs1.71/unit – Linked to petroleum price adjustment
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Rs0.90/unit – Through fuel cost adjustment (FCA)
Industries also benefited with a separate Rs7.59 per unit reduction in power tariffs, aimed at boosting competitiveness and production.
Relief Ending: What Happens After July?
The final phase of the package — the Rs1.55/unit relief — will appear in July 2025 electricity bills. According to energy sector sources, no new directive has been issued for its continuation. The National Electric Power Regulatory Authority (NEPRA) has already held hearings on a proposed Rs0.10 per unit hike under May’s FCA.
Possible Minor Relief Ahead?
There is some speculation that June’s FCA adjustment (reflected in July bills) might be negative, potentially offering minimal relief. However, this would only partially offset the impact of discontinuing the broader subsidy.
Rising Costs & Policy Pressure
The end of the subsidy comes at a time when the government faces:
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Increased fiscal pressure
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Negotiations with international financial institutions
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Calls for subsidy rationalization and energy sector reform
As a result, households and industries are bracing for higher energy costs in Pakistan, a development that may have far-reaching economic effects if no new relief measures are introduced.
