PM Shehbaz announces reduction in electricity prices

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Thursday announced a reduction in electricity prices in a ‘major’ relief to the public.

Addressing an event organised for the announcement, PM Shehbaz revealed that the government has decided to decrease the electricity tariff by Rs 7.41 per unit.

“I have come to share good news regarding Pakistan’s economic growth on the occasion of Eid. The promise made by Nawaz Sharif in the party manifesto has been fulfilled today,” he said.

“The benefit of the global decrease in oil prices will be passed on to the people in the form of reduced electricity prices,” said the prime minister.

“Fortunately, the IMF has agreed to provide relief”.

It is worth noting here that the International Monetary Fund (IMF) has allowed the government to reduce electricity tariffs by Rs1 per kilowatt-hour for all consumers.

Read more: KE seeks Rs4.84 per unit refund in January FCA

The cut in the electricity prices will be financed through revenue collected via a levy imposed on captive power plants using natural gas, the IMF said in a statement.

Following the IMF statement, Pakistan’s Finance Minister Muhammad Aurangzeb announced that the government plans to slash electricity prices soon.

In an interview with a foreign media outlet last month, Aurangzeb revealed that PM Shehbaz was leading the efforts to reduce electricity prices, with an official announcement expected shortly.

Aurangzeb shared that the Pakistan government was working on a budget that expands the tax base to include sectors like real estate, retail, and agriculture.

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