Electricity tariffs will further be reduced: PM Shehbaz

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif said that electricity tariffs will further be reduced for domestic consumers and industries through reforms in the electricity sector.

He expressed satisfaction with the current changes in the electricity sector, stating that they are producing great results, while chairing a review meeting of the sector in Islamabad on Friday.

PM Shehbaz said that he has pledged to guarantee the supply of affordable and sustainable power. He said revising agreements with IPPs is saving the national treasury and reducing electricity prices for consumers.

The Prime Minister made reference to the campaign against power theft and pledged to speed it up even further in order to completely eradicate the losses incurred by all distribution firms in this area.

PM Shehbaz said that appointment of well-reputed board members from the private sector in electricity distribution companies is improving their performance. He said the reduction in transmission losses of electricity is also a clear indication of the positive results of the reforms.

Read More: Electricity prices likely to drop by Rs2 per unit across Pakistan

The meeting was informed that the recovery rate of distribution companies improved to 93.26 percent by December last year, as a result of reforms in the electricity sector and the anti-theft campaign.

The meeting was also briefed on the progress of the 500 kV Mitiari-Moro-Rahim Yar Khan and Ghazi Barotha-Faisalabad transmission line projects.

Separately, PM Shehbaz greenlighted a ‘comprehensive’ reform plan for Pakistan’s marine sector’s full resurrection.

Pakistan Maritime and Seaport Authority

According to Radio Pakistan, the proposal calls for the establishment of the Pakistan Maritime and Seaport Authority, and its execution would be overseen by a commission led by the defense minister.

To oversee the execution of the authorised actions, the committee will meet every two weeks.

In the meantime, the National Ports Master Plan will be updated, the Pakistan National Shipping Corporation will be restructured, and port rates will be standardized.

Special attention will be paid on the digitization of seaports, aquaculture and other sectors. New terminals will also be established on different seaports under the reforms plan.

According to economic experts, Pakistan is suffering an annual loss of five trillion rupees in the maritime sector. The reasons for the losses include underutilization of port capacities, tax evasion and fraudulent billing.

They further said Due to the misuse of the Afghan Transit Trade System, Pakistan is suffering billions of rupees in losses. Tax evasion in the Maritime sector is causing loss of over eleven hundred billion rupees.

Economic experts said the comprehensive reform plan for the maritime sector is a critical need of the time. They said the country’s economy will witness a significant improvement due to the digitization of seaports and implementation of reforms plan.