According to The News, which cited sources, Pakistan has been requested by the International Monetary Fund (IMF) to cut inflows into the sizeable circular debt to zero starting in the current fiscal year.
A major contributing element has remained the inefficiency of the Power Distribution Companies (Discos), which caused losses of Rs265 billion in FY25 as opposed to Rs276 billion in FY24. Furthermore, under recoveries decreased from Rs315 billion in FY24 to Rs132 billion in FY25.
The baseline tariff, which will go into effect on January 1, 2026, has been explained to the IMF.
Since electricity companies have requested Rs455 billion in revenue, the National Electric electricity Regulatory Authority would examine the interim tariffs for the eight Discos for 2025–2026.
