The Pakistan government has assured the International Monetary Fund (IMF) that electricity and gas prices will continue to rise in line with global energy costs, as part of ongoing economic reforms tied to the country’s bailout programme.
The commitment was made during budget negotiations between Pakistani officials and the IMF, where both sides discussed fiscal targets, energy sector reforms, and measures aimed at controlling circular debt in the power and gas sectors.
According to officials involved in the talks, the government pledged to continue transferring the full impact of international energy prices to consumers through regular tariff revisions. However, protected consumer categories will remain exempt from the planned increases to shield low-income households from additional financial pressure.
Under the agreement, electricity and gas tariffs are expected to increase for most domestic, commercial, and industrial consumers. The government also assured the IMF that quarterly electricity tariff adjustments and monthly fuel charges adjustments would continue without delays.
The IMF has consistently pushed Pakistan to implement structural reforms in the energy sector, arguing that delayed tariff adjustments and subsidies have contributed significantly to rising circular debt and financial instability within state-owned utility companies.
Pakistan’s energy sector has struggled for years with mounting unpaid liabilities, transmission losses, subsidy burdens, and fluctuating global fuel prices. Officials believe that regular tariff adjustments are necessary to reduce fiscal pressure and maintain financial sustainability in the sector.
The latest assurance comes at a time when inflation and rising utility costs are already placing heavy pressure on households and businesses across the country. Analysts warn that further increases in electricity and gas prices could affect industrial production costs, household budgets, and overall economic activity.
Government representatives reportedly informed the IMF that reforms in the power sector would remain a key priority under the next phase of the bailout programme. Measures under discussion include improving bill recovery, reducing electricity theft, and enhancing efficiency in energy distribution companies.
Despite concerns over the economic impact of higher utility bills, officials maintain that exempting protected consumers will help cushion the most vulnerable segments of society. Protected consumers typically include low-usage households eligible for subsidised electricity and gas rates.
Economic experts say the continuation of tariff adjustments reflects Pakistan’s broader commitment to meeting IMF conditions aimed at stabilising public finances and restoring investor confidence.
The IMF programme remains critical for Pakistan’s economic stability, foreign exchange reserves, and access to international financing, making energy sector reforms one of the central components of ongoing negotiations.
