PM Shehbaz announces Rs7.41 per unit relief in electricity prices

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Prime Minister Shahbaz Sharif on Thursday announced a reduction in electricity prices per unit for consumers, and promised that the power sector would provide more relief in the near future through structural reforms.

Addressing a function to unveil the package, the Prime Minister said that an average price per unit for domestic consumers has been reduced by Rs 7.15 and Rs 7.69.

He added, “In June 2024, the price per unit for the industrial sector was Rs 58.5, for the first time, Rs 10.3 and another Rs 7.69.”

The Prime Minister pointed out that the government is making structural reforms in particular in the power sector to ensure further aid and overall development of the country.

He added, “This reduction will help manufacturers produce cheap and more competitive products.

He said that inflation and electricity bills have caused the common people to suffer a lot in the past. However, he assured that the government was taking further steps to provide maximum relief to them.

Highlighting the structural reforms in the power sector, the Prime Minister said that the government would ensure that the government would stop theft of power, which was Rs 600 billion every year. Similarly, he set up an open market and said, electricity prices will decrease further.

He said that there is no option but to privatize or trade power distribution companies (disco) to reduce line losses and power theft on the national exchequer.

“I have instructed the concerned team to work diligently to implement reforms in this sector as soon as possible,” he added.

Appreciating the task force set up to finalize the power reform, the Prime Minister said that the force has worked hard and through their modern ideas, they brought different powers and were able to persuade the IMF to reduce electricity prices.

He added, “We did not pass on low international petroleum prices and maintained prices to ensure that the government would reduce electricity prices, which the IMF in principle agreed.”

He said that confidence with the IMF, which was violated in 2020, is now being restored.

Similarly, he said that the government successfully discussed with free power generators (IPPS), and praised the government team under the leadership of Sardar Awas Ahmed Khan Legree for his commendable efforts.

He added, “After talks with the IPPS, our team managed to save Rs 3,696 billion which should be paid to the IPP.”

Similarly, he added that the government also faces a major challenge of circular loans worth Rs 2,393 billion.

However, he said the government has made arrangements to resolve the issue slowly but permanently in five years.

He also thanked his leader and PML -N President Muhammad Nawaz Sharif and its affiliated political party for their support and guidance in this regard.

Recalling the time when he took over as the Prime Minister, he said that Pakistan was on the path to default and the nation, especially the business community, was afraid of the country’s future.

He said that even the government faces difficulties to open LC for import of petroleum products and other essential items. “We didn’t even have the resources to operate the power sectors.”

He added that the responsible elements responsible for all these mistakes that were out of Pakistan were out of the default and were claiming that no one could save Pakistan from being defaulted.

He said such elements had crossed all boundaries, and it was the group that violated their agreement with the International Monetary Fund (IMF).

Later, he said that the same party also hindered government talks with the IMF. He added, “By doing so, he tried to save his politics at the expense of the interests of the country.”

“This is the blessing of the Almighty who accepted the government’s hard work and saved the country as a default.”

Prime Minister Shahbaz said that Pakistan’s economy has now become stable and it is moving towards sustainable development and development.

He said that during the process of economic stability, Chief of Army Staff (COAS) General Asim Munir played a key role, which was valuable.

He also acknowledged the sacrifices of those who suffered a lot of damage due to inflation.

He added, “The country’s economy needs badly surgically operations to get rid of all the issues responsible for the crisis in the economic sector.”

He said that during the election campaign, PML -N President Nawaz Sharif had pledged to bring inflation to a single digit 38 % down by 2026.

“By the grace of Almighty Allah and the efforts of the government team, inflation has now decreased even one year ahead.

He said that in one year, the government had reduced the prices of petroleum to Rs 38.

The policy rate, he said, is 22.5 %, which has given a lot of relief to the business community.

He emphasized that the facts and privatization of public ownership is part of difficult decisions that have to happen now. “The government suffers a major loss of Rs 800 billion due to the loss of SOE.”

He said that if he did not take action to get rid of these huge losses, all the government’s efforts would be useless.

The Prime Minister said that this year, the government is receiving 35 % more taxes than last year.

– With extra input from the app.