ISLAMABAD: Prime Minister Shehbaz Sharif yesterday announced a significant reduction in the electricity prices of up to Rs7.69 per unit for the consumers, pledging to provide further relief in near future through structural reforms in the power sector.

The prime minister, addressing a ceremony to unveil the package, said that the average per unit price for the domestic consumers had been brought down by Rs7.15 and Rs7.69 industrial sector.

"In June 2024, the per unit price for industrial sector was Rs58.5 which was first reduced by Rs10.3 and further by Rs7.69," he added. The prime minister pointed out that the government was taking structural reforms especially in power sector to ensure further relief for the consumers and overall development of the country.

"This reduction will help industrialists to produce cheaper and more competitive products," he added. He noted that the common people had to suffer a lot in the the past due to high inflation rate and electricity bills.

However, he assured that the government was taking further steps to provide maximum relief to them. Highlighting the structural reforms to be taken in power sector, the prime minister said the government will ensure halting power theft which was around Rs 600 billion per year.

Similarly, he said by establishing open market, the electricity tariffs will be further decreased. He said there was no option but to privatise or commercialize Power Distribution Companies (DISCOs) to reduce the burden of line losses and power theft on the national exchequer.

"I have directed the team concerned to work diligently to implement reforms in the sector as soon as possible," he added. Appreciating the task force formed to finalise power reforms, the prime minister said the force worked really hard and through their innovative thoughts, they brought different options and managed to convince the IMF to reduce the power tariffs.

"We did not pass on the low international petroleum prices and retained the prices to ensure that the government will reduce the power tariffs to which IMF agreed in principle," he added. He said the trust with the IMF that was breached in 2020, was now being restored.

Similarly, he said the government successfully negotiated with the Independent Power Producers (IPPs), and praised the government team, led by Sardar Awais Ahmad Khan Leghari, for their commendable efforts.

"After negotiation with the IPPs, our team managed to save Rs3,696 billion that were to be paid to the IPPs," he added. Likewise, he added that the government was also facing an immense challenge of circular debts of Rs2,393 billion.

However, he informed that the government had also made arrangements to gradually but permanently solve this problem within five years.

He also extended his gratitude to his leader and PML-N President Muhammad Nawaz Sharif and the allied political party leadership for their support and guidance in this regard.

Published in The Daily National Courier, April, 04 2025

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