Major Decrease in Electricity Prices Announced by Pakistan PM
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Synopsis
On April 3, Pakistan PM Shehbaz Sharif announced a substantial reduction in electricity prices, cutting the rate by Rs 7.41 per unit, providing much-needed relief to consumers facing inflation and high utility costs. Further relief measures are expected in the near future.
Key Takeaways
- Electricity prices decreased by Rs 7.41 per unit.
- Further relief measures are on the horizon.
- IMF negotiations led to reduced electricity tariffs.
- Pakistan's economy shows signs of stabilization.
- Plan to eliminate circular debts within five years.
Islamabad, April 3 (NationPress) Pakistan's Prime Minister Shehbaz Sharif has declared a significant reduction in electricity costs for household users, slashing the rate by Rs 7.41 per unit. He has also indicated that further relief for citizens is forthcoming. This announcement has been positively received as it offers essential respite to consumers who have been grappling with high inflation, inflated utility bills, and escalating fuel costs.
During a special gathering with cabinet members and the business community on Thursday, Sharif also revealed a Rs 7.59 decrease in commodity prices for industrial facilities.
This news follows a month after the government successfully negotiated with the International Monetary Fund (IMF) for a reduction in electricity tariffs, which was subsequently ratified by the National Electric Power Regulatory Authority (NEPRA). The IMF permitted Pakistan to cut utility rates by Rs 1 per kilowatt.
“Upon taking office, the country faced the threat of default, and the IMF was not open to discussions. Our administration encountered numerous challenges and worked diligently to avert a default. However, we are now in a position to fulfill our commitments as outlined in our party manifesto,” stated the Prime Minister.
Notably, Shehbaz Sharif expressed gratitude to Pakistan Army Chief General Asim Munir and the military for their unwavering support in stabilizing the national economy.
Reflecting on his government's achievements, the PM highlighted that Pakistan enjoys the lowest petroleum prices in the region, noting that interest rates have fallen from 22% to 12%, while inflation has decreased from 38% to single digits.
“Pakistan's economy is transitioning from darkness to light. Economic stability has been secured, and now it is time for Pakistan to thrive. Without lowering power costs, advancement in industry, trade, and agriculture is unattainable. The IMF was initially resistant to allowing a decrease in electricity rates, but we insisted that relief should be offered through electricity rather than fuel prices,” he explained.
On another pressing issue regarding circular debts, Shehbaz Sharif stated that a comprehensive strategy has been devised to tackle this challenge.
“This debt will no longer circulate – it will be abolished once and for all. It will be entirely eradicated within the next five years,” he assured.
