Prime Minister Shehbaz Sharif announced on Tuesday that the government will provide relief to people consuming less than 200 units of electricity for the next three months.

The PM made the announcement while addressing an event in Islamabad.

Media reports early in the day had suggested the government has proposed to withdraw the tariff increase for both protected and non-protected consumers using up to 200 units. Prime Minister Shehbaz Sharif has directed the cabinet to approve the proposal on an urgent basis.

The proposed relief, which would apply from July to September 2024, aims to alleviate the burden on low-income households. The federal government will allocate a subsidy of Rs50 billion to offset the tariff reduction.

This decision comes after the federal cabinet approved a significant increase in the base tariff for domestic electricity consumers last week, fulfilling a key condition imposed by the International Monetary Fund (IMF). The cabinet had approved a Rs7.12 increase per unit, leading to a corresponding rise in electricity bills for consumers.

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The cabinet had previously approved a base tariff increase of Rs48.84 per unit, which, after adding sales tax, would reach Rs57.63 per unit. The total tariff, including adjustments and taxes, was expected to exceed Rs65 per unit.

The cabinet had also approved a Rs3.95 increase per unit for protected consumers using 1 to 100 units, a Rs4.10 increase for protected consumers using 101 to 200 units, a Rs7.11 increase for non-protected consumers using 1 to 100 units, and a Rs7.12 increase for non-protected consumers using 101 to 200 units.