Govt Cancels Plan to Shift Power Tariff Rebasing to January

The federal government has abandoned its proposal to rebase electricity tariffs from January 1 each year instead of the current July 1 schedule after the International Monetary Fund (IMF) refused to support the plan. The Economic Coordination Committee (ECC) approved the Power Division’s proposal on January 17 to shift financial shocks onto consumers in winter when electricity consumption is lower. However, while the Finance Ministry raised no objections, it advised consulting development partners, including the IMF, World Bank, and Asian Development Bank (ADB), before implementation. The Power Division argued that tariff rebasing coincides with high Fuel Charges Adjustments (FCAs) during the summer which would cause public dissatisfaction. It proposed shifting the timeline to stabilize electricity prices. However, after discussions with the IMF, the plan was shelved as development partners advised focusing on ongoing reforms instead. Therefore, the existing rebasing mechanism will remain in place.