Power consumers likely to receive major relief in tariffs

The Pakistan government is likely to reduce electricity prices as Prime Minister Shehbaz is set for a meeting with leading business leaders, ARY News reported, citing sources.

Sources said that PM Shehbaz Sharif will hold a meeting with prominent business leaders tomorrow (Thursday), where he will take them into confidence about the reforms in Pakistan’s power sector.

Former caretaker minister Gohar Ejaz will lead the business leaders’ delegation, which will discuss the country’s exports and other economic issues.

The meeting has been scheduled at 2:00 PM at the Prime Minister’s Secretariat, sources said.

It is worth noting here that the International Monetary Fund (IMF) has allowed the government to reduce electricity tariffs by Rs1 per kilowatt-hour for all consumers.

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The cut in the electricity prices will be financed through revenue collected via a levy imposed on captive power plants using natural gas, the IMF said in a statement.

Following the IMF statement, Pakistan’s Finance Minister Muhammad Aurangzeb announced that the government plans to slash electricity prices soon.

In an interview with a foreign media outlet last month, Aurangzeb revealed that PM Shehbaz was leading the efforts to reduce electricity prices, with an official announcement expected shortly.

Aurangzeb shared that the Pakistan government was working on a budget that expands the tax base to include sectors like real estate, retail, and agriculture.