Latest news with #Rs4.73
Express Tribune
23-03-2025
- Business
- Express Tribune
Comprehensive relief package on electricity costs to be announced soon: PM
Listen to article Prime Minister Shehbaz Sharif has announced that a comprehensive package will soon be introduced to reduce electricity costs for the public. Chairing a meeting on the Power Division in Islamabad on Sunday, PM Shehbaz Sharif emphasised that ongoing reforms in the power sector would enable the government to provide relief on electricity prices. He directed officials to dispel misconceptions about the government's solarisation policy through factual communication, reaffirming that the promotion of renewable energy remains a priority. Additionally, the prime minister called for an accelerated privatisation process for power distribution companies and urged the resolution of legal and administrative hurdles affecting the liquidation of generation companies. PM also instructed enhanced coordination between the Power Division, Water Resources Division, and Petroleum Division to formulate a unified energy sector strategy. Earlier, it was reported that Prime Minister Shehbaz Sharif had been expected to officially announce a reduction in electricity tariffs by Rs8 per unit on March 23, following approval from the International Monetary Fund (IMF). According to sources, the Ministry of Finance and the Power Division had explored additional measures to further lower electricity rates by Rs2 per unit. A final decision had been made before the official announcement. The reduction, set to take effect from April 1, 2025, was expected to be reflected in consumer bills starting in May. Of the Rs8 per unit decrease, Rs4.73 per unit had been designated as a permanent adjustment.
Express Tribune
19-03-2025
- Business
- Express Tribune
PM likely to announce Rs8 per unit electricity price cut on March 23
Listen to article Government is set to announce an electricity tariff reduction of Rs8 per unit, with Prime Minister Shehbaz Sharif expected to make the official announcement on March 23 following approval from the International Monetary Fund (IMF), Express News reported. According to sources, the Ministry of Finance and Power Division are exploring additional measures to further reduce electricity rates by Rs2 per unit. A final decision will be made before the announcement. The reduction, effective from April 1, 2025, will reflect in consumer bills from May. Of the Rs8 per unit cut, Rs4.73 per unit will be a permanent adjustment. The tariff adjustment results from multiple measures, including the cancellation of agreements with six Independent Power Producers (IPPs), revising contracts with 16 IPPs under a "take-and-pay" model, shifting bagasse power plants' currency from the US dollar to Pakistani rupees, and lowering the return on equity (ROE) for government power plants (GPPs) to 13%, with the dollar rate fixed at Rs168. Officials noted that the tariff reduction calculations also account for the impact of lower oil prices in the global market since March 16, 2025. Maintaining current oil prices is expected to save approximately Rs168 billion, allowing a reduction of Rs1.30 per unit in power tariffs. The IMF has agreed to approve this relief, acknowledging the government's decision to freeze oil prices for three months. If international oil prices drop further, the financial impact could reach Rs250 billion. However, the Rs1.30 per unit relief will only be available for one month. The government aims to make Rs6 per unit of the Rs8 reduction a permanent adjustment. Additionally, sources indicate that the Rs35 PTV fee included in electricity bills may be removed starting in July 2025. For the fiscal year 2026 budget, the government plans to allocate funds to sustain PTV operations without relying on electricity bill collections.
