The federal government has abandoned its proposal to rebase electricity tariffs from January 1 each year, opting to retain the current July 1 schedule after the International Monetary Fund (IMF) declined to support the plan.

The Economic Coordination Committee (ECC) had approved the Power Division’s proposal on January 17, which aimed to shift financial shocks onto consumers during the winter months when electricity consumption is lower. While the Finance Ministry raised no objections to the proposal, it recommended consulting development partners, including the IMF, World Bank, and Asian Development Bank (ADB), before implementation.

The Power Division argued that the current tariff rebasing schedule coincides with high Fuel Charges Adjustments (FCAs) during the summer, leading to public dissatisfaction. The proposed shift to January was intended to stabilize electricity prices and reduce the burden on consumers during peak consumption months.

However, after discussions with the IMF, the plan was shelved. Development partners advised the government to focus on ongoing energy sector reforms rather than altering the tariff rebasing timeline. As a result, the existing mechanism of rebasing electricity tariffs on July 1 will remain in place.