ISLAMABAD (Kashmir English): Prime Minister Shehbaz Sharif announced on Thursday a Rs7.41 per unit reduction in electricity prices for domestic consumers, pledging further relief as part of efforts to strengthen Pakistan’s economy. With this cut, the electricity rate for households has now dropped to Rs34 per unit, while industrial units have also been granted a reduction of Rs7.59 per unit.
The Prime Minister (PM) of Pakistan, Shehbaz Sharif, has announced a ‘major reduction’ in electricity prices for domestic consumers. The Prime Minister of Pakistan, Shehbaz Sharif, made the announcement on Thursday that the rates of electricity would be reduced by Rs7.41 per unit. He also promised additional relief for the people of Pakistan as his government continues to work to strengthen the economy.
Speaking at a special event attended by cabinet members, business leaders, and other dignitaries, the prime minister highlighted that this move followed the government’s request to the National Electric Power Regulatory Authority (Nepra) for lower electricity prices. The decision was also approved by the International Monetary Fund (IMF), which had sanctioned a Rs1 per kilowatt reduction in utility charges.
Reflecting on past economic difficulties, Shehbaz Sharif emphasised that his government had worked relentlessly to steer Pakistan away from default. “When we assumed office, the country was on the verge of economic collapse, and the IMF was unwilling to negotiate,” he said. However, he expressed confidence that the government was now fulfilling its promises.
He acknowledged the crucial role played by Chief of Army Staff General Asim Munir and his team in stabilising the economy but noted that the journey to recovery had been fraught with obstacles. Despite these challenges, he pointed out that Pakistan continues to have the lowest petroleum prices in the region.
Discussing economic improvements, the prime minister also highlighted that interest rates had declined from 22 per cent to 12 per cent, while inflation had fallen from 38 per cent to single digits. He also announced plans to hold discussions with industrialists to further bolster the economy. “Structural reforms will be necessary to ensure long-term stability,” he stated.
Shehbaz Sharif insisted that Pakistan’s economy was now transitioning from uncertainty to stability. “We have achieved economic stability, and now is the time for Pakistan to progress,” he remarked. However, he made it clear that subsidies could not be offered under the IMF programme.
He underscored the importance of electricity prices in economic growth, stating that without affordable power, progress in industry, trade, and agriculture would be hindered. “Initially, the IMF opposed reducing electricity prices, but we insisted that relief should come through power tariffs rather than fuel prices,” he explained.
Addressing Independent Power Producers (IPPs), he stated that while he held no grievances against them, discussions had been initiated to ensure that the public benefits. “IPPs have made substantial profits; now, it is their turn to give back to the nation,” he added.
Furthermore, Shehbaz Sharif announced that a permanent solution had been developed for the circular debt of Rs2,393 billion. “This debt will no longer continue to accumulate; it will be resolved permanently,” he declared, promising its complete elimination within the next five years.
