PM Shehbaz Sharif Announces Major Reduction in Electricity Prices – Relief for Domestic & Industrial Consumers
ISLAMABAD: Prime Minister Shehbaz Sharif has announced a significant reduction in electricity prices, offering much-needed relief to domestic and industrial consumers across Pakistan. The decision is aimed at boosting economic activity and reducing financial burdens on households and businesses.
Key Highlights of Electricity Price Reduction:
- Rs 7.41 per unit cut for domestic consumers
- Rs 7.59 per unit cut for industrial consumers
- Effective immediately, this price reduction aligns with Pakistan’s economic revival strategy
PM Shehbaz made the announcement at a special event, describing the tariff cut as a “gift to the nation” on the occasion of Eid. He reaffirmed the government’s commitment to fulfilling the promises made by PML-N leader Nawaz Sharif in the party’s election manifesto.
IMF’s Role & Financial Strategy
The International Monetary Fund (IMF) has allowed a reduction of Rs1 per kilowatt-hour, enabling the government to ease the financial strain on consumers. To finance the tariff reduction, the government will utilize revenue generated through a levy on captive power plants using natural gas.
Finance Minister Muhammad Aurangzeb confirmed that this initiative is part of a broader strategy to stabilize the power sector and economy. He emphasized the government’s ongoing efforts to expand the tax base by including sectors like real estate, retail, and agriculture.
Economic Impact & Structural Reforms
PM Shehbaz Sharif expressed confidence that this reduction in electricity prices will stimulate economic growth, create jobs, and enhance industrial productivity. He also outlined key government measures to resolve energy sector challenges, including:
- Successful negotiations with Independent Power Producers (IPPs), saving Rs3,696 billion
- Addressing circular debt, currently standing at Rs2,393 billion
- Eliminating power theft, which costs the nation Rs600 billion annually
- Privatization of power distribution companies or their transfer to provincial authorities
Commitment to Economic Stability & Inflation Control
The prime minister reaffirmed his commitment to achieving single-digit inflation, as promised in the PML-N’s election manifesto. Notable economic improvements include:
- Inflation rate reduced to 1.5%
- Petrol prices decreased by Rs38 per liter in the last year
- Policy rate cut from 22.5% to 12%
PM Shehbaz also commended his cabinet members and Chief of Army Staff for their contributions to economic stability. He emphasized that bold and difficult decisions will continue to be made to restore Pakistan’s economic stature.
Final Thoughts
With this major electricity price reduction, Pakistan’s leadership aims to ease financial pressure on citizens and industries, ensure sustainable economic growth, and fulfill promises made to the nation. The government remains committed to implementing long-term reforms that will strengthen the energy sector and stabilize the economy.
