PM unveils power tariff cut to ease public burden
Electricity rate reduced by over Rs7 across the country
STATE OF THE NATION
April 3, 2025
Prime Minister Shehbaz Sharif on Thursday announced a reduction of Rs7.41 per unit in electricity tariffs across the country as part of a “major” relief package aimed at easing the financial strain on citizens facing exorbitant power bills.
Speaking at an event in Islamabad, the premier congratulated the nation and acknowledged the difficulty of persuading the International Monetary Fund (IMF) to approve the cut. He added that his team had made extensive efforts to secure the reduction.
For industries, he stated that electricity prices would be lowered by Rs7.59 per unit. The prime minister also stressed the need for structural reforms in the power sector, reiterating his commitment to addressing electricity theft, which he estimated at Rs600 billion.
“Even though work on this has already begun, we must completely eliminate such [malpractices],” he said. “If one shopkeeper pays their electricity bill honestly while the neighbouring shopkeeper does not, it creates an unfair competition.”
On Wednesday, the government posted on its official X account that “great news for the entire nation” would be revealed the following day, without providing specific details. The post included the hashtag ‘Small Eid, Big Gift’, referencing Eidul Fitr.
Last month, it was widely reported that the prime minister would announce an Rs8 per unit reduction in electricity tariffs during his address to the nation on 23rd March. However, no such relief package was mentioned in his Pakistan Day speech.
Instead, he chaired a meeting on the power sector following a last-minute setback when a significant reduction in electricity tariffs failed to secure IMF approval. The prime minister reassured the public that a tariff cut would “be announced soon”.
Meanwhile, the government recently decided to keep petroleum prices at their current levels, foregoing an up-to-Rs13 per litre reduction recommended by the oil regulator and the petroleum division. Instead, it pledged to pass on the financial impact of this decision to electricity consumers.
The ruling Pakistan Muslim League-Nawaz (PML-N) had earlier hinted that Prime Minister Shehbaz would deliver a “big gift from the federal government to the people”.
Rana Sanaullah, a senior aide to the prime minister, wrote on X that the eagerly awaited relief package would “thwart Pakistan’s default plot”. He added, “Stock market rally, remittances rise, and inflation falls — tomorrow, the propaganda of despair will end!”