Islamabad, April 3, 2025 – Prime Minister Shehbaz Sharif has announced a major relief measure by reducing electricity tariffs by Rs 7.41 per unit for domestic consumers.
This initiative is part of the government’s broader effort to provide financial relief to the public and strengthen the economy.
During a special event attended by cabinet members, business leaders, and industry experts, Shehbaz revealed that the electricity price for domestic users had been lowered to Rs 34 per unit. Additionally, industrial electricity tariffs have also been reduced by Rs 7.59 per unit, further supporting economic growth.
This announcement follows the government’s recent request to the National Electric Power Regulatory Authority (Nepra) for a tariff reduction, which was approved with the endorsement of the International Monetary Fund (IMF). The IMF, after careful consideration, permitted a Re1 per kilowatt-hour reduction in utility rates, enabling the government to implement these changes.
Addressing the audience, Shehbaz reflected on the challenges his administration faced in stabilizing the economy. He recalled how Pakistan was on the verge of economic collapse when he took office and highlighted the role of the IMF in averting a financial crisis. “When we assumed office, the country was on the brink of default, and negotiations with the IMF were stalled. We worked relentlessly to bring stability,” he stated.
The prime minister also expressed his gratitude to Chief of Army Staff General Asim Munir and his team for their unwavering support in navigating economic challenges. He acknowledged the hurdles that remain but pointed out that Pakistan continues to maintain the lowest petroleum prices in the region, a testament to the government’s commitment to public welfare.
Shehbaz emphasized that economic progress is directly linked to electricity prices. “No sector—whether industrial, agricultural, or commercial—can thrive unless power tariffs are brought down,” he asserted. He explained that despite initial IMF resistance, his government insisted on prioritizing electricity tariff reductions over petroleum price cuts.
Highlighting Pakistan’s economic turnaround, Shehbaz noted that interest rates had fallen from 22% to 12% and inflation had dropped from a staggering 38% to single digits. He announced plans to hold consultations with industrialists to further propel economic reforms.
The prime minister also addressed the issue of independent power producers (IPPs), stating that while they have contributed to the energy sector, they have also reaped substantial profits. “It is time for IPPs to contribute back to the nation,” he remarked, suggesting negotiations to restructure agreements in favor of public benefit.
Furthermore, Shehbaz unveiled a long-term solution to the country’s circular debt crisis, which stands at Rs 2,393 billion. “This debt will not keep circulating—it will be permanently resolved within the next five years,” he declared, marking a significant step toward financial stability.
With these reforms, Shehbaz reaffirmed his government’s commitment to ensuring economic recovery and sustainable development. “Pakistan is moving from economic darkness to prosperity. Stability has been achieved, and now it is time to rise,” he concluded.