Prime Minister Shehbaz Sharif on Thursday announced a reduction of Rs7.41 per unit in electricity prices for household consumers, unveiling a new power sector package aimed at easing the burden of high tariffs. Addressing a high-level event in Islamabad, the Prime Minister also revealed a Rs7.59 per unit cut for industrial users.
The announcement follows approval from the International Monetary Fund (IMF) and forms part of a broader reform effort to stabilise energy prices and curb the rising cost of living. “The country cannot progress without a significant reduction in electricity prices,” Shehbaz stated, praising his administration for pushing through the changes.
Shehbaz detailed that electricity tariffs, which stood at Rs58.35 per unit in June 2024, have now been reduced to Rs48.19, with additional cuts announced during Thursday’s address. These reforms, he said, would provide meaningful relief to consumers and businesses alike.
He also disclosed that renegotiated agreements with Independent Power Producers (IPPs) had led to savings of Rs3,696 billion — funds that were previously earmarked for IPP payments. The Prime Minister said arrangements were underway to eliminate circular debt within five years, depending on behavioral changes across the sector.
Electricity theft remains a major concern, with losses estimated at Rs600 billion annually. The Prime Minister warned that such theft disproportionately impacts vulnerable groups including the poor, widows, and orphans. He called for urgent action to address the issue.
As part of long-term structural reforms, Shehbaz proposed the creation of an open electricity market to encourage competition and help sustain lower power rates. The measures, he said, reflect the government’s commitment to economic recovery and to delivering tangible benefits to the people of Pakistan.
