The International Monetary Fund (IMF) has urged Pakistan to ensure timely and regular increases in electricity and gas tariffs as part of efforts to address persistent financial challenges in the energy sector and contain the country’s growing circular debt.
The Fund has also called for stronger measures to reduce power-sector losses, improve revenue collection, curb electricity theft and enhance the financial performance of energy companies.
It has stressed the importance of regular, cost-based gas tariff adjustments to prevent further accumulation of losses and reduce dependence on government support.
The proposed reforms are aimed at improving the long-term financial sustainability and efficiency of Pakistan’s energy sector.
However, higher electricity and gas prices could place additional pressure on households, businesses and industries, potentially increasing production costs and affecting consumers already facing rising living expenses.
The government therefore faces a difficult balancing act: implementing the reforms sought by international lenders while protecting consumers, supporting businesses and maintaining industrial competitiveness.
The success of these measures will depend not only on tariff adjustments but also on controlling theft, improving governance, reducing inefficiencies and ensuring that energy-sector reforms translate into better financial performance.
