Pakistan's Power Price Shock: Rs 1.42/Unit Hike Adds Rs10.57bn Burden

The Rs 1.42 per unit rise for February's fuel adjustment will now be collected from consumers in April bills and, according to some reports, the overall additional burden consumers now have to shoulder comes to around Rs10.57 billion, according to an editorial piece in Pakistan's The News International.

Aside from conserving fuel, the austerity measures the government has taken in the wake of the Middle East conflict can also be seen as a way to help people save money. However, in this country, be it the pump or the home, there does not appear to be anywhere people can hide from price and tariff hikes.

And for now, the global energy future remains murky. As such, Pakistanis could well find themselves paying more for fuel and for power through this month, the article laments.

There is also the impact on the country's beleaguered industry to consider. A representative of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has reportedly said that the industrial sector has already borne an aggregate burden of Rs 564.7 billion over the past three years and that further increases would be detrimental to sustainability and industrial viability, the article observes.

However, Pakistan's power malaise long pre-dates the Middle East turmoil. In FY2024-25, Pakistan's power distribution sector bled a combined Rs 397 billion due to transmission and distribution losses and weak bill recoveries. If this is not in the control of the authorities, it should be. So should the hefty fixed payments made to power producers regardless of output and the low utilisation of power plants, the report points out.

- IANS