Prime Minister Shehbaz Sharif on Thursday slashed electricity prices by Rs 7.41 per unit for domestic consumers, pledging more relief for Pakistanis as his government strives to boost the economy.
With the electricity rate reduced to Rs34 per unit for domestic users, the PM also revealed that the commodity’s prices for industrial units have also been slashed by Rs7.59.
The premier’s announcement, made during a special event attended by cabinet members, leading business figures and others, comes a month after the government’s request to the National Electric Power Regulatory Authority (Nepra) for a reduction of electricity prices — following the approval of the International Monetary Fund (IMF) which has given its go-ahead for Re1 per kilowatt cut in utility rates.
Speaking at the event, PM Shehbaz emphasised the need to reflect on past challenges while moving forward. He said that his government had faced numerous obstacles and worked tirelessly to prevent Pakistan from defaulting.
“When we took office, the country was on the brink of default, and the IMF was unwilling to negotiate,” he said, adding that the time had come to fulfil the promises made in the party’s manifesto.
Shehbaz acknowledged the strong support of Chief of Army Staff General Asim Munir and his team in stabilising the economy.
However, he pointed out that the path to economic recovery had been blocked by significant hurdles. Despite these challenges, he noted that Pakistan continues to have the lowest petroleum prices in the region.
Highlighting economic progress, the prime minister mentioned that interest rates had dropped from 22% to 12%, while inflation had fallen from 38% to single digits.
He announced plans to soon hold meetings with industrialists to further improve the economic situation. “To strengthen the economy, structural reforms will be necessary,” he said.
The premier asserted that Pakistan’s economy was now moving from darkness to light. “Economic stability has been achieved, and now it’s time for Pakistan to rise,” he said. However, he stressed that under the IMF programme, subsidies could not be granted.
He linked economic growth directly to electricity prices, saying that without a reduction in power costs, progress in industry, trade, and agriculture would not be possible.
“The IMF initially refused to allow a reduction in electricity prices, but we insisted that instead of lowering petrol prices, relief should be provided through electricity,” he explained.
Addressing independent power producers (IPPs), the prime minister said he had no complaints against them but had engaged in discussions to ensure public benefit.
“IPPs have made massive profits, and now it’s time for them to give back to the nation,” he remarked.
Shehbaz further announced that a permanent solution had been devised for a circular debt amounting to Rs2,393 billion. “This debt will no longer keep circulating — it will be eliminated once and for all,” he declared, adding that it would be completely eradicated within the next five years.
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