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Pakistan's electricity, fuel, and LPG prices rose between 43 and 68 percent this fiscal year, a UNDP economist warned the National Assembly's Standing Committee on Finance and Revenue on Monday. The panel also criticised the government for missing its own budget-law deadlines and making little progress on reducing the energy sector's ballooning circular debt.
The EU's CBAM is now in its definitive phase, and Pakistan's textile sector — sending 26% of exports to the EU — has run out of room to delay decarbonisation. A working roadmap runs through NEPRA's net-metering caps, wheeling tariffs, solar PPA frameworks, and circular-debt unwind.
Pakistan's Public Accounts Committee has directed the Cabinet Division to submit a full inquiry report on Nespak's alleged multi-billion rupee irregularities, centred on the Rs 43 billion Neelum Jhelum Hydro Power Project. Auditors estimate Rs 42.9 billion in losses from the project, which has been unable to generate power since a second tunnel collapse in May 2024.
Pakistan's foreign direct investment fell 31 per cent to $1.409 billion in the first ten months of FY2026, with April recording a particularly weak $54 million net inflow. The power sector was the top destination for foreign capital at $785.6 million, outpacing all other industries despite ongoing tariff and capacity payment pressures.
NHA contractors protested in Karachi over Rs. 4.2 billion in unpaid invoices — a standoff structurally identical to the payment-chain failure that drove Pakistan's power-sector circular debt past Rs. 2.5 trillion.
Altern Energy Limited has terminated several key agreements with the Government of Pakistan and CPPA-G, the state body responsible for bulk electricity procurement. The move adds to growing tensions between Pakistani authorities and independent power producers over capacity payments, circular debt, and ongoing contract renegotiations.
The IMF has flagged Pakistan's 81 per cent reliance on Gulf fuel imports as its most serious external economic risk following the release of a $1.1 billion programme tranche. Energy pricing has been listed as a prior action for completing the IMF review, signalling that domestic fuel and electricity costs are likely to rise in the months ahead.
India has raised retail fuel prices for the first time in four years as global crude oil surges above $120 per barrel following Strait of Hormuz disruptions tied to the Iran conflict. Pakistan faces direct exposure through NEPRA fuel cost adjustments on electricity bills and rising LNG import costs.