In a move that’s sparked debate, Pakistan’s Ministry of Energy has asked for a delay in granting a fuel cost adjustment (FCA) relief of Rs4.69 per unit for K-Electric (KE) consumers in Karachi. The relief, proposed for April 2025, would have marked the eighth straight month of reduced power bills for residents.
The ministry argued during Monday’s public hearing that the relief could disrupt the country’s uniform electricity tariff system and strain financial resources — especially with the government already earmarking Rs21 billion in subsidies under its ongoing IMF obligations.
However, Nepra Chairman Waseem Mukhtar didn’t hold back, strongly criticizing the ministry’s timing and interference. He questioned why an FCA, meant to reflect actual fuel cost fluctuations, should be tied to subsidy concerns or delayed due to broader policy goals. “Where is the mechanism for uniformity that you’re talking about?” he asked, pointing out inconsistencies in the ministry’s stance.
KE’s CEO, Moonis Alvi, reminded the forum that Karachiites had to pay higher tariffs in the past when fuel costs were rising — and no one talked about national uniformity back then. He warned that delaying the current FCA relief would hurt both households and industries already struggling with high energy costs.
The FCA mechanism is designed to keep electricity prices in line with changes in fuel costs. With global fuel prices down, KE customers were expecting some financial relief — until the ministry stepped in.
Now, Nepra says it will wait until the ministry’s objections are fully addressed. The decision has been put on hold, and a final call could take another week — or possibly more.
For now, Karachi’s power consumers will have to sit tight, wondering whether relief is on the horizon or whether bureaucratic red tape will once again stand in the way.
