PM announces Rs8 per unit electricity tariff reduction

Prime Minister Shehbaz Sharif is set to announce a reduction in electricity tariffs by Rs8 per unit on March 23. This change will take effect from April 1, 2025. Consumers can expect to see this reflected in their bills starting in May. Of the total Rs8 reduction, Rs4.73 will be a permanent cut. This is due to changes in agreements with independent power producers and adjustments to power purchase agreements. Efforts to align energy pricing with the Pakistani rupee and reduce the return on equity for government power plants are also factors in this permanent decrease. Additionally, a temporary relief of Rs1.30 per unit will be available for one month. This is linked to the government's decision not to lower petroleum product prices despite falling international market rates. The government estimates this situation will create a financial burden of Rs168 billion, which will help fund the temporary tariff drop. The International Monetary Fund (IMF) has approved this plan, allowing the government to offer these reductions. PM Sharif is preparing to inform the public about this relief strategy, calling it one of many steps to lower electricity costs. The government aims to utilize the benefits from petroleum pricing to ease the financial load on the population.