PM Shehbaz announces Rs6 per unit cut in electricity prices
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Prime Minister Shehbaz Sharif has announced a reduction of Rs7.59 per unit in electricity prices while addressing an event in islamabad to unveil the government's new electricity package, aimed at lowering costs for consumers.
The decision on Thursday comes after approval from the International Monetary Fund (IMF) and is part of broader efforts to ease the financial burden of high electricity costs on the public.
"The country cannot progress without a significant reduction in electricity prices, he said.
"This is no ordinary feat," the premier remarked on the development while commending the efforts of his government.
The Prime Minister also provided details on revised agreements with Independent Power Producers (IPPs) and highlighted other key reforms that, he said, had resulted in savings of Rs3,696 billion for the national exchequer.
'This amount was meant to be paid to the IPPs,' Shehbaz Sharif announced.
Prime Minister Shehbaz Sharif also said said. "Arrangements have been made to address circular debt, with plans to eliminate it within five years, contingent on changes in behavior."
The Rs7/59 per unit cut is a significant part of the government's plan to reduce power tariffs, with earlier proposals suggesting reductions ranging from Rs6 to Rs8 per unit.
Giving details of the price cuts, Prime Minister Shehbaz explained that the rate per unit, which stood at Rs58.35 in June 2024, was reduced to Rs48.19, marking a decrease of Rs10.3 per unit. He hoped that the additional Rs7 per unit reduction announced today would benefit the people of Pakistan.
He also highlighted the ongoing issue of electricity theft, estimating that the country loses approximately Rs600 billion annually due to this practice. The Prime Minister emphasized that the financial burden of these losses unfairly impacts vulnerable groups, such as the poor, widows, and orphans, and called for measures to eliminate electricity theft.
Additionally, the Prime Minister proposed the creation of an open market in the electricity sector, aimed at fostering healthy competition and further lowering electricity rates.
In his address, the Prime Minister emphasised the importance of these reforms in providing relief to the people and improving economic conditions.
He assured that these measures were taken with the goal of easing the financial burden on consumers, particularly in the face of rising electricity costs.
The announcement was made during a high-level meeting, where senior federal ministers and officials were present.
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