ISLAMABAD: The federal government has decided to roll back the recent increase in electricity tariffs for domestic consumers using 200 units per month, said sources.

Prime Minister Shehbaz Sharif convened a cabinet meeting where the decision to withdraw the hike for these consumers is likely made, according to the sources.

They also mentioned that the federal government plans to provide a subsidy of approximately Rs 50 billion to alleviate the burden of high electricity bills.

The proposed relief would apply to consumers using 200 units or less per month from July to September 2024.

Previously, on July 4, the federal cabinet had approved a significant increase in electricity tariffs for residential consumers using 100 to 500 units per month.

The new basic tariff was proposed at Rs 48.84 per unit, which would have increased to Rs 57.63 per unit after sales tax. Including adjustments and other taxes, the maximum electricity tariff would have exceeded Rs 65 per unit.

According to the federal cabinet’s earlier decision, the monthly tariff for consumers using 1 to 100 units was proposed to be Rs 23.59, while those using 101 to 200 units would have to pay Rs 30.07 per unit. Consumers using 201 to 300 units would see their tariff increase to Rs 34.26 per unit, and those using 301 to 400 units would pay Rs 39.15 per unit. The highest charges would apply to consumers using 401 to 500 units, who would pay Rs 41.36 per unit.