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PM Announces Rs7.59 Power Tariff Cut as Eid Gift to Nation, Emphasizes Structural Reforms in Power Sector
PM Shehbaz Sharif announces a significant Rs7.59 reduction in electricity prices, a step towards uplifting industries and agriculture. The government is committed to tackling power sector challenges, including the Rs600 billion theft. #SmallEidBigGift #PowerTariffCut #EconomicRevival
ND
by News Desk
2025-04-03
PM Announces Rs7.59 Power Tariff Cut as Eid Gift to Nation, Emphasizes Structural Reforms in Power Sector

Prime Minister Shehbaz Sharif has revealed a significant reduction in electricity tariffs by Rs7.59 per unit, marking a major step towards economic relief for Pakistan’s industries and agriculture. Speaking at an event in Islamabad, the Prime Minister thanked the nation for its patience and reiterated the efforts his team made to secure this reduction from the International Monetary Fund (IMF).

The reduction comes at a time when the government has been focusing on the revival of Pakistan’s economy, tackling structural issues in the power sector, and addressing widespread electricity theft, which has cost the government over Rs600 billion. The Prime Minister emphasized that this cut was essential for improving competitiveness in the industrial sector, and ensuring fairness for all businesses.

"This is a gift to the nation on the occasion of Eid, and we are committed to addressing the deep-rooted issues in our power sector," said PM Shehbaz. The government’s efforts are also geared towards tackling electricity theft, which the Prime Minister described as a major barrier to fair competition among businesses.

The announcement, initially teased as a "big gift" for the nation, was widely expected to include a much larger cut, but was scaled down following negotiations with the IMF. However, PM Shehbaz reassured the public that more relief would be forthcoming in the future. The Prime Minister also highlighted that the reduction in tariffs would aid in boosting exports, improve competitiveness, and provide a much-needed relief to industries.

The IMF Deal and Tariff Adjustments

The tariff reduction is part of the conditions set by the IMF under Pakistan’s ongoing bailout program. As of March 2025, Pakistan’s economic recovery has been supported by a $1.3 billion deal with the IMF, which includes some flexibility in tariff adjustments. However, the IMF has approved only a Re1 per unit reduction in power tariffs for industrial captive power plants, with additional reductions contingent on meeting other economic goals.

Despite these hurdles, the government remains optimistic about the future. “We will continue this journey of development, progress, and economic revival,” PM Shehbaz added.

The government’s effort to balance fiscal discipline with economic relief measures has been widely welcomed by industrialists and consumers alike. It remains to be seen how these measures will impact the overall economic outlook for Pakistan in the coming months.
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