On April 2, Pakistan’s Prime Minister Shehbaz Sharif plans to disclose a decrease in electricity rates during an important gathering set for tomorrow at 2:00 PM. This session will include prominent federal ministers. According to expectations, the prime minister might unveil a reduction of Rs8 per unit in power charges.
Following several initiatives, such as revoking deals with six Independent Power Producers (IPPs), the tariff reduction has been implemented. Furthermore, the government amended pacts with 16 IPPs and changed the billing currency for bagasse power facilities from U.S. dollars to Pakistan Rupees. In addition, the profit margin for state-owned power stations will decrease.
Authorities observed that the decrease in tariffs factors in the effect of reduced global oil prices starting from March 16, 2025. Keeping present oil costs is anticipated to conserve Rs168 billion, resulting in a decrease of Rs1.30 per unit for electricity rates.
The IMF has consented to endorse the reduction in tariffs, backing the government’s choice to keep oil prices stable for a period of three months. The administration intends to permanently incorporate half of the Rs8 decrease, amounting to Rs6 per unit. Furthermore, the Rs35 PTV charge included in electricity bills could potentially be eliminated beginning July 2025.
