PM Shehbaz announces Rs7.41 per unit cut in electricity tariff for domestic consumers
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IMF approved government request to reduce the basic electricity tariff by Re1
ISLAMABAD (Dunya News) – Prime Minister Shehbaz Sharif on Thursday announced Rs7.41 per unit reduction on electricity tariff for domestic consumers and Rs7.69 for industrial consumers.
Addressing a “special” gathering of parliamentarians, cabinet members and high-ranking officers here, the prime minister announced Rs7.69 per unit reduction in the average electricity price for industrial sector to Rs40.51 per unit from existing Rs48.19 per unit. He recalled that the rate stood at Rs58.50 per unit in June last year.
Announcing relief for domestic consumers, he said the rate was being decreased by Rs7.41 per unit, fixing new rate at Rs37.64 from Rs45.05 per unit at present. The per unit rate stood at Rs48.70 per unit in June 2024.
Earlier, PM 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.
Also Read: IMF allows Pakistan to reduce electricity tariff by Re1 per unit
"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.
AWAIS LEGHARI SPEAKS
Minister for Energy Awais Leghari stated that reforms were introduced with special focus on transparency and merit in all matters.
He said concrete steps were taken for reforms in the energy sector, as both the public and industry were facing difficulties. The prime minister also formed a task force, comprising competent officers from various organisations, the minister stated.
The event was attended by Deputy Prime Minister Ishaq Dar, federal ministers Awais Leghari, Muhammad Aurangzeb, Rana Sanaullah, Khawaja Asif, Azam Nazir Tarar, Ahsan Iqbal, Ataullah Tarar, Rana Tanvir Hussain, Hanif Abbasi, Shaza Fatima, Mustafa Kamal, and government officials.
Earlier, the International Monetary Fund (IMF) approved a request from the government to reduce the basic electricity tariff by Re1.
