Pakistan Electricity Tariffs Revision: The International Monetary Fund (IMF) is actively engaging with Pakistani authorities regarding proposed revisions to electricity tariffs as of February 14, 2026. This dialogue aims to ensure that these changes align with commitments to economic stability and do not disproportionately affect middle- or lower-income households.
In a recent statement, the IMF emphasized the importance of evaluating the potential impact of the proposed tariff adjustments on macroeconomic stability, particularly concerning inflation. The discussions are part of Pakistan’s efforts to comply with conditions under its $7 billion Extended Fund Facility (EFF) as another program review looms.
Pakistan’s announcement of a tariff overhaul is seen as a move to ease industrial pressure while potentially increasing inflation, a significant concern given the country’s economic conditions. The power sector’s circular debt, a longstanding issue, has prompted multiple tariff increases since 2023 under IMF-backed reforms.
The IMF noted improvements in managing circular debt within program targets, aided by enhanced recovery and loss prevention measures. As inflation remains a key economic and political challenge, the outcome of these discussions could have far-reaching implications for Pakistan’s economic landscape.
Published in SouthAsianDesk, February 15th, 2026
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