On Thursday, Prime Minister Shehbaz Sharif announced a Rs7.41 per unit reduction in electricity prices for domestic users, bringing the rate down to Rs34 per unit. Industries also benefit from a Rs7.59 cut in their rates.
During a prominent event with cabinet members and business leaders, PM Shehbaz revealed plans to alleviate burdens and stimulate economic growth.
The decision follows a month of discussions with the National Electric Power Regulatory Authority (Nepra) and approval from the IMF for a reduction of one rupee per kilowatt-hour. Shehbaz referred to this move as a step toward fulfilling his party’s promises. “We inherited a nation on the brink of default,” he stated. “Now, we’re turning the tide.”
PM Shehbaz Sharif has fulfilled his promise. Massive reduction in electricity prices! Made the impossible possible.
#الحمدللہ_کر_دکھایا pic.twitter.com/fAZtD3Xtr7
— PMLN (@pmln_org) April 3, 2025Shehbaz credited Chief of Army Staff General Asim Munir for supporting economic stabilization. He noted significant improvements: interest rates decreased from 22% to 12%, and inflation fell from 38% to single digits. However, IMF regulations prohibit subsidies, which poses a challenge. He addressed this by prioritizing relief on power costs instead of reducing petrol prices.
Read: Pakistan to Cut Electricity Prices, PM Meets Business Leaders
“Lower electricity prices are key to industry, trade, and agriculture,” he stressed. Plans for industrialist meetings signal more reforms ahead. He also tackled an Rs2,393 billion circular debt, vowing to erase it within five years. “It’s a permanent fix,” he declared.
Shehbaz urged independent power producers (IPPs) to share profits with the public after years of gains. Nepra’s April 4 hearing could greenlight a Rs1.71 per unit subsidy for three months, boosting demand. The national average tariff, set at Rs32.99 per kWh since October, undercuts Nepra’s Rs35.50 benchmark, thanks to government support.
PM Shehbaz claimed that Pakistan’s economy is transitioning “from darkness to light.” With these cuts, he hopes for a brighter future.
