PM Shehbaz Sharif Reduces Electricity Prices By Rs. 7.59 Per Unit
Prime Minister Shehbaz Sharif has announced a major reduction in electricity prices in Pakistan. He revealed a price cut of PKR 7.41 per unit for household users and PKR 7.59 per unit for industries.
A special event was held in Islamabad to announce this government relief package, attended by Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Khawaja Asif, Rana Sanaullah, and other ministers.
Prime Minister Shehbaz Sharif said that high electricity bills had caused anger and sadness in homes. He added, “We must not forget the sacrifices of the common man. I am presenting this as an Eid gift for the nation.”
He stated that electricity will now be provided to all household users at an average rate of PKR 34.37 per unit, down from the current rate of PKR 45.05 per unit. He also mentioned that in June 2024, industries were paying PKR 58.50 per unit for electricity, and it’s important to look back at past challenges while moving forward.
He said, “The time has come to fulfill the promises made in our manifesto.” When his government took over, the country was on the brink of default, and the IMF wasn’t ready to listen. He credited the Army Chief and his team for their full support in achieving economic stability, despite huge obstacles.
He highlighted that petroleum prices in Pakistan are still the lowest in the region. The interest rate has dropped from 22% to 12%, and inflation has fallen from 38% to single digits. He emphasized that tough reforms are needed to improve the economy.
He revealed that the IMF initially refused to allow a reduction in electricity prices, but after discussions, he convinced them that instead of cutting petrol prices, the government wanted to provide relief through electricity bills. The Prime Minister clarified that he has no complaints against Independent Power Producers (IPPs). Talks were held with IPPs, who have earned huge profits. He told them, “You’ve made many times your investment; now it’s time to give back to the nation.”
He also announced that the electricity sector’s circular debt, which stands at PKR 2,393 billion, has been permanently addressed. “This debt will no longer circulate and will be completely eliminated,” he said. He added that a solid plan has been made to ensure the circular debt doesn’t return for the next five years, and within that time, it will be gone for good.
