ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday announced Rs7.41 per unit reduction on electricity tariff for domestic consumers and Rs7.59 for industrial consumers.
Addressing a “special” gathering of parliamentarians, cabinet members and high-ranking officers here, the prime minister stated that in June 2024, the price of electricity for domestic consumers was Rs48.70 per unit, but it’s now Rs45.05 per unit.
“Today, the tariff is being reduced by an additional Rs7.41 per unit, bringing it to to Rs34.37 per unit for domestic consumers,” he continued.
He mentioned that the tariff for industries was Rs58.50 per unit, which has now been reduced to Rs48.19 – an additional reduction of Rs7.59 per unit. The tariff for industrial consumers has now been fixed at Rs40.60 per unit.
Earlier, Premier Shehbaz stated that he had come to deliver good news regarding electricity bills as a result of economic growth and stability.
He said the government worked tirelessly to stabilise the economy and avoid danger of bankruptcy looming over the country.
Macroeconomic indicators have improved, and he “is aware that expensive electricity has impacted the public.”
He noted that due to high electricity costs, economic activities have been affected.
“Inflation has now come down to single digit. Over the course of a year, the prices of petroleum products have decreased by Rs38 per litre. The prices of petroleum products are the lowest in the entire region. The policy rate has now reduced to 12pc. Privatisation and rightsising are key components of economic reforms.”
He stated that the government was committed to implementing all the clauses of the agreement with the IMF. Negotiations were also held with IPPs to reduce electricity tariff. Successful negotiations with the IPPs resulted in a total relief of Rs3,696 billion, the premier added.
Prime Minister Shehbaz mentioned that the circular debt in the power sector stands at Rs2,393 billion. Over the next five years, the circular debt will gradually be eliminated.
Attention has also been given to the losses of government-owned power plants, where the annual expenditure on idle plants was Rs7 billion.
It was very challenging to convince the IMF to allow cut in power tariff. The IMF was not ready to listen to us, he said.
Efforts were made to create obstacles to the IMF programme. But hard work paid off and the country was saved from bankruptcy, Prime Minister Shehbaz added.
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