It can cost more to power a house than rent it in Pakistan: report

Electricity bills have outpaced home rental rates for some people in Pakistan, as tariff increases and other reforms to comply with IMF loan conditions spark nationwide protests, reports Bloomberg.

The South Asian nation -- where nearly half the population survives on less than $4 a day -- has seen electricity prices surge 155 per cent since 2021, after the government started hiking industrial and retail rates to bolster its chances of securing loans from the International Monetary Fund.

The energy sector has become an acute pain point as Pakistan grapples with chronic economic crisis. Inflation of around 12 per cent -- the highest in Asia -- has eroded purchasing power and pushed electricity consumption to the lowest in four years as people and companies abandon the predominantly gas-powered national grid in favor of installing solar panels.

The average per-unit electricity price for residential users rose 18 per cent in July, when the country secured a new $7 billion loan from the IMF. Many residents have since seen electricity bills -- typically a fraction of household expenses -- surpass rents that range from $100 to $700 a month, said Samiullah Tariq, head of research at Pakistan Kuwait Investment Co.