In a momentous announcement on Thursday, Prime Minister Shehbaz Sharif revealed a sweeping relief package to ease the financial pressure of hefty electricity bills on the public. He declared a notable Rs7.41 per unit decrease in power tariffs across the nation.
While addressing an enthusiastic gathering in Islamabad, the prime minister extended heartfelt congratulations to the nation. He remarked on the challenging discussions with the International Monetary Fund (IMF) regarding the rate cut, applauding his team’s dedication and perseverance in achieving this milestone. For the industrial sector, he announced an even greater cut, reducing electricity rates by Rs7.69.
The premier underscored the necessity for the government to initiate comprehensive structural reforms within the power sector, expressing his unwavering resolve to combat the enormous theft amounting to Rs600 billion.
“Despite the ongoing efforts, it is imperative to completely root out [malpractices],” he articulated. “It’s unfair if one shopkeeper pays their electricity bill sincerely while the neighboring shopkeeper evades it, creating an environment of unhealthy competition.”
Elaborating on the imminent structural innovations within the power sector, the prime minister emphasized the government’s commitment to curtailing the rampant power theft, estimated at approximately Rs600 billion annually. He also revealed plans to foster an open market structure to drive electricity tariffs down further. He stated that privatizing or commercializing power distribution companies (DISCOs) is inevitable to lighten the load of line losses and power theft from the national treasury.
“I have instructed the relevant team to work relentlessly to implement these reforms expeditiously,” he mentioned.
Praising the task force established to finalize power reforms, the prime minister lauded their relentless hard work and inventive ideas, which helped win the IMF’s confidence in reducing power tariffs. “Despite not transferring the lower international petroleum prices to consumers, we kept the prices stable, ensuring the reduction in power tariffs, which IMF approved in principle,” he commented. Furthermore, he noted that the breached trust with the IMF in 2020 is gradually being mended.
In a similar vein, he mentioned the government’s fruitful negotiations with independent power producers (IPPs), commending the government team for their outstanding dedication.
“Through successful deliberations with the IPPs, our team secured savings of Rs3,696 billion that would have otherwise been paid out,” he stated. He also acknowledged the colossal challenge posed by circular debts amounting to Rs2,393 billion.
Prime Minister Shehbaz announced that the government has crafted comprehensive plans to gradually, yet permanently, resolve this issue over the course of five years.
In an official statement, Power Minister Awais Leghari confirmed that the government had honored its commitment to the nation by reducing the power tariff for domestic consumers.
Minister Leghari elaborated that the Power Division is diligently focusing on various facets to continually lower and stabilize electricity prices across the country.
Leghari enthusiastically stated that the public will now experience ongoing enhancements in the electricity sector. “We are relentlessly striving around the clock to refine the electricity distribution system and bring about further decreases in power tariffs,” he declared.
He also mentioned that due to the government’s strategic initiatives, industries will soon achieve full operational capacity.