Daily Times

Prime Minister Shehbaz Sharif is expected to announce a reduction in electricity prices during a high-level meeting tomorrow. The meeting, scheduled for 2:00 PM, will be attended by key federal ministers. The prime minister is likely to reveal a Rs8 per unit reduction in electricity tariffs.

The tariff cut comes after a series of measures, including the cancellation of agreements with six Independent Power Producers (IPPs). The government also revised contracts with 16 IPPs and shifted bagasse power plants’ currency from the US dollar to the Pakistani rupee. Additionally, the return on equity for government power plants will be reduced.

Officials noted that the tariff reduction also takes into account the impact of lower global oil prices since March 16, 2025. Maintaining current oil prices is expected to save Rs168 billion, leading to a Rs1.30 per unit reduction in power tariffs.

The IMF has agreed to approve the tariff relief, supporting the government’s decision to freeze oil prices for three months. The government plans to make Rs6 per unit of the Rs8 reduction permanent. Additionally, the Rs35 PTV fee in electricity bills may be removed starting in July 2025.