Good news! PM Shehbaz announces reduction in electricity prices
Prime Minister Shehbaz Sharif has announced a significant reduction in electricity prices, calling it a major relief for the people.
Speaking at a special event, he shared that the government has decided to lower electricity tariffs by Rs 7.41 per unit for domestic consumers and Rs 7.59 per unit for industries.
He expressed hope that this move would help boost economic activity in the country and described it as a special gift for the people on Eid. He also mentioned that this step fulfills a promise made by Nawaz Sharif in the party’s manifesto.
Shehbaz Sharif explained that the drop in global oil prices has made it possible to provide this relief, and fortunately, the IMF has also agreed to support the decision. He highlighted that successful negotiations with Independent Power Producers (IPPs) will save the country Rs 3,696 billion.
Addressing the issue of circular debt, which currently stands at Rs 2,393 billion, he assured that necess arrangements have been made to manage it.
The prime minister also spoke about power theft, which causes a loss of Rs 600 billion annually. He stressed that privatizing power distribution companies or handing them over to provincial governments could help resolve this issue.
Discussing Pakistan’s economic challenges, he said that consistent efforts had prevented the country from defaulting. He was optimistic about the country’s economic stability and credited the government, cabinet members, and the Chief of Army Staff for their role in improving the situation.
Shehbaz Sharif emphasized the need to eliminate Rs 800 billion in losses caused by State-Owned Enterprises and stated that a proper plan is in place to tackle this problem.
He also reminded people of the PML-N’s election promise to bring inflation down to single digits, mentioning that inflation has already been reduced to 1.5%. He further pointed out that petrol prices have dropped by Rs 38 over the past year, and the policy rate has come down from 22.5% to 12%.
The IMF, in a statement, confirmed that it had allowed Pakistan to reduce electricity tariffs by Rs 1 per unit for all consumers. The government plans to finance this relief through revenue collected from a levy on captive power plants using natural gas.
Finance Minister Muhammad Aurangzeb had previously hinted at this reduction in electricity prices, stating that PM Shehbaz Sharif was leading efforts to bring relief to the public. He also mentioned that the government is working on expanding the tax base by including sectors like real estate, retail, and agriculture.
