Electricity Bills Likely to Increase from July 2025
The Government of Pakistan is planning to increase electricity prices starting July 2025. This proposal is part of the 2025–26 federal budget, which includes a plan to remove the 10% limit on electricity surcharges. This means that the government could add extra charges on electricity bills whenever needed without sticking to the current cap.
How Much Could the Increase Be?
If the proposal is approved:
- Consumers may face an extra Rs 3.23 per unit on their electricity bills.
- This increase won’t have a fixed upper limit anymore, giving the government the flexibility to apply higher surcharges depending on financial needs.
Why Is the Government Doing This?
- The main goal is to manage the circular debt in the energy sector.
- The government plans to borrow Rs 1,275 billion from commercial banks, and this loan will be paid back by charging monthly surcharges from electricity users over six years.
- These surcharges will help repay interest and loans taken for the power sector.
FBR Chairman Rashid Mehmood Langrial has clarified that no extra surcharge has been imposed yet. However, the changes in the budget suggest that these surcharges may come into effect soon after the legal process is complete.
