A Bloomberg report reveals that electricity bills in Pakistan have surpassed household rent due to a dramatic 155% increase in prices since 2021. This surge has been driven by the government’s adherence to International Monetary Fund (IMF) loan conditions, which required hikes in electricity tariffs and other economic reforms.
The report highlights that inflation, currently around 12%, is putting additional strain on Pakistanis, with nearly half of the population earning less than $4 a day. In July, the average cost of electricity for homes increased by 18% as part of a strategy to secure a new $7 billion IMF loan. As a result, many residents now face electricity bills that are higher than their monthly rent, which ranges from $100 to $700.
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The situation is worsened by inefficiencies in the electricity sector, with around 16% of power lost to theft and transmission issues, adding to the country’s debt crisis. The IMF and the Pakistani government have agreed on plans to cut energy costs and privatize state-owned electricity companies to address these problems.
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