Islamabad, April 3 – Prime Minister Shehbaz Sharif has announced a significant reduction in electricity prices to provide relief to consumers. Addressing a special event in Islamabad, he revealed that the price of electricity for domestic consumers will be reduced by PKR 7.41 per unit, while industrial consumers will see a PKR 7.69 per unit decrease. He emphasized that this reduction in power tariffs will accelerate economic activity and help ease the financial burden on citizens and businesses.
The prime minister highlighted that electricity prices have been a major hurdle in economic growth. He assured the public that the government is committed to further reducing power costs in the coming months. “Expensive electricity has been a challenge for households and industries alike. We understand the sacrifices made by the common people, and we are determined to bring relief through sustainable reforms,” he stated.
Eliminating Circular Debt and Power Sector Reforms, PM Shehbaz Sharif
PM Shehbaz Sharif addressed the long-standing issue of circular debt, which currently stands at PKR 2,393 billion. He revealed that the government has devised a long-term strategy to eliminate this debt within the next five years. However, he stressed that structural reforms are necessary to achieve this goal. “Without deep-rooted changes, we cannot free ourselves from this burden,” he added.
He also announced plans to sell off non-functional power plants (GENCOs) that have been inactive for years but continue to incur massive operational costs. “These power plants have been draining PKR 7 billion annually, despite generating zero electricity. By selling them, we have already raised PKR 9 billion, which will be used to improve the energy sector,” he said.
Ending Power Theft and Privatizing Distribution Companies
The prime minister revealed that Pakistan faces PKR 600 billion in electricity theft every year, which puts additional financial strain on the country. To tackle this issue, the government has launched a strict crackdown on power theft and aims to introduce better management systems in electricity distribution companies (DISCOs).
He further announced that the government is considering either privatizing DISCOs or transforming them into professional and efficient entities. “Consumers often face difficulties dealing with power distribution companies, and this cannot continue. We must make these companies efficient or hand them over to private management,” he stated.
Negotiations with IPPs to Reduce Costs
PM Shehbaz Sharif also spoke about successful negotiations with Independent Power Producers (IPPs), which will save the nation PKR 3,696 billion in future payments. He highlighted that previous attempts to renegotiate contracts with IPPs had failed, but the current government has achieved a breakthrough.
“Our task force convinced IPPs to reconsider their contracts in favor of national interest. These negotiations will provide long-term relief to consumers and reduce the overall cost of electricity generation,” he said.
Commitment to Economic Stability: PM Shehbaz Sharif
The prime minister reaffirmed his commitment to economic reforms and stability, stating that the government has fulfilled all IMF conditions to restore financial credibility. He also mentioned that while global fuel prices have decreased, instead of lowering fuel prices domestically, the government has directed these savings toward reducing electricity costs.
“Pakistan was on the brink of economic collapse, and some forces wanted us to default. However, through careful planning and tough decisions, we have stabilized the economy,” he concluded.
With these power sector reforms and tariff reductions, the government aims to boost industrial productivity, create employment opportunities, and reduce inflation, providing much-needed relief to the people of Pakistan.
