Prime Minister Shehbaz Sharif on Thursday announced a major relief for domestic consumers of electricity, slashing the power tariff by Rs 7.41 per unit, reported the 24NewsHD TV channel.
Shehbaz Sharif also announced to cut the electricity rate for industrial consumers by Rs7.59 per unit.
After the reduction in the power tariff, domestic consumers will now get electricity at Rs 34.37 per unit, while industrial consumers will get electricity at Rs 40.60 per unit.
At a special ceremony at the Prime Minister’s House in Islamabad, PM Shehbaz credited Army Chief General Hafiz Asim Munir for his critical support in securing the economic turnaround.
He revealed that after consultations with the IMF and negotiations with Independent Power Producers (IPPs), the relief package was finalised.
"I have come to bring a big Eid gift for the nation," the prime minister declared, adding that another promise from former premier and PML-N President Nawaz Sharif’s election manifesto had been fulfilled.
PM Shehbaz said his team, led by Awais Leghari, negotiated with the IPPs to pay back the nation, as they have already earned more than 200 percent profit from these projects.
Discussing Pakistan’s long-standing circular debt crisis, PM Shehbaz said that negotiations with Independent Power Producers (IPPs) were a major challenge. He disclosed that circular debt currently stands at Rs 2,393 billion but vowed that within five years, it will be completely eliminated.
He announced that 3696 billion rupees, which were payable to the IPPs in the upcoming 15 years, would not be paid as his government has made a deal with the IPPs.
The PM said annually, 800 billion rupees ruins in subcidy, which should be ended in any case to bring it in the national exchequer for development of Pakistan.
He also announced that they have succeeded in getting a permanent solution for Rs 2300 billion in circular debt. He also announced that the power circulator debt will end in the next five years.
He emphasised that when his government took charge, Pakistan was on the verge of default, and the IMF was unwilling to engage with Pakistan’s previous leadership. Even opening Letters of Credit (LCs) was a major challenge, he added.
He recalled that before the PML-N government, Pakistan was facing severe political and economic instability, and the IMF refused to cooperate.
The relief package comes as a major boost for consumers struggling with rising energy costs, reflecting the government's efforts to stabilise the economy and energy sector.
He said his government has succeeded in bringing inflation to a single digit after strong joint efforts of the institutions. We have also reduced the price of petrol to Rs 38 per litre.
He announced that without reducing electricity costs, Pakistani industry and other sectors could not perform very well. He appreciated the task force's efforts for achieving the target.
The PM declared that Pakistan's economy is now stable, crediting the military leadership and public sacrifices for the turnaround. Speaking at a special ceremony, he emphasised that before his government took charge, the country was on the verge of economic collapse.
"Before our government, Pakistan was in a state of severe instability. We didn't even have money to keep power plants running," the prime minister said.
He questioned, "Do you know which finance minister wrote to the IMF to stop funding?" He accused political opponents of hoping for a default, adding, "But today, the economy has stabilised."
PM Shehbaz acknowledged that rising electricity prices had severely affected the people. However, he assured that inflation had dropped from 38% to just 1.5%, while interest rates had been reduced from 22% to 12%.
He highlighted that downsizing and privatisation were difficult but necessary steps. "In one year, petrol prices have come down by Rs 38 per litre," he added. The premier also revealed that his government had to plead with the IMF to secure relief in electricity tariffs.
With his government’s reforms and tough decisions, the prime minister expressed optimism that Pakistan would regain its lost economic strength and provide relief to its people.
In the ceremony, Deputy Prime Minister Ishaq Dar, Federal Minister for Energy Awais Leghari, Finance Minister Muhammad Aurangzeb, and others were also present.