Pakistan to slash winter power tariffs to spur demand.

9/11/2024 17:11

        Pakistan will reduce electricity tariffs during winter in a bid to boost consumption and cut the use of natural gas for heating, its power minister told Reuters on Saturday.
        
        The move is expected to provide relief to businesses and citizens, who have suffered from steep and sudden increases in electricity tariffs following energy sector reforms suggested by the International Monetary Fund.
        
        Utilities in Pakistan, many of which have had to curtail or even completely cease operations in winter months due to demand dropping by up to 60% from peak summer levels, will also benefit from the move.
        
        "Reducing prices will increase demand, especially in winter when people use inefficient gas resources," Power Minister Awais Leghari told Reuters in a telephone interview.
        
        Pakistan will pilot the plan starting this winter, and the lower tariffs will apply between December 2024 to February 2025, he said.
        
        Pakistan relies heavily on expensive natural gas and burning wood for heating during winter.