Government's Electricity Relief Package to End in July

The government’s electricity relief package, which offered temporary financial relief to electricity consumers across Pakistan, is officially set to expire by the end of July 2025. As per reports from ARY News, authorities have decided against extending the three-month initiative, signaling an end to the Rs. 7.41 per unit reduction introduced by Prime Minister Shehbaz Sharif in April.

Launched as a goodwill gesture during Eid, the government’s electricity relief package aimed to curb inflationary pressure and reduce monthly bills for households and industries alike. “The promise made by Nawaz Sharif in the party manifesto has been fulfilled today,” PM Shehbaz had said during the announcement on April 4. At the time, industrial units were also granted a separate Rs. 7.59 per unit cut in electricity tariffs.

Breakdown of Components of Government’s Electricity Relief Package and Final Adjustments

The short-term relief was made possible through a series of calculated adjustments, including:

Quarterly adjustments: Rs. 1.90 per unit (April–June) and Rs. 1.55 per unit (May–July)
Petroleum price adjustment: Rs. 1.71 per unit
Fuel price adjustment: Rs. 0.90 per unit

The final Rs. 1.55 per unit cut will reflect in consumers’ July bills, marking the last leg of the government’s electricity relief package.

In related developments, sources also revealed that the June Fuel Cost Adjustment (FCA), included in July’s billing cycle, may turn out to be negative, offering minor relief. However, this is counterbalanced by a recent NEPRA hearing considering a Rs. 0.10 per unit hike for May’s FCA.

While the relief package temporarily eased electricity bills, its discontinuation could lead to a noticeable rise in consumer costs from August onward, especially during peak summer demand. With no plans for a follow-up subsidy or policy update, consumers may need to brace for tighter budgets.