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PM Shehbaz Sharif is expected to announce a cut in electricity price today (Thursday) after receiving approval from the International Monetary Fund (IMF).
Defence Minister Khawaja Asif stated that the prime minister would address the nation and share “good news.” He said the announcement is the result of efforts since 2022 and assured that the government remains focused on national service, development, and economic recovery.
In a separate development, sources revealed that PM Shehbaz will meet top business figures in Islamabad. The meeting will include cabinet members and 336 business tycoons. The prime minister will brief them on reforms in the power sector.
Last month, the federal government formally requested the National Electric Power Regulatory Authority (Nepra) to reduce electricity prices by Rs1.71 per unit. The cut will be managed by increasing the tariff differential subsidy. The proposed reduction will apply to all distribution companies, including K-Electric, from April to June 2025. Lifeline domestic consumers will not be affected.
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Nepra has scheduled a hearing on April 4 to review the request of PM Shehbaz. If approved, the government will provide a subsidy of Rs1.71 per unit during this period. The goal is to lower prices for three months and increase electricity demand.
The IMF had earlier approved a reduction of Re1 per unit in electricity tariffs. The relief will be given to all consumers and funded through revenue from levies on gas-based captive power plants.
A government source disclosed that officials initially planned an Rs8 per unit reduction, but the IMF did not approve it. However, Pakistan will receive $1.3 billion under the Resilience and Sustainability Facility (RSF) once the IMF’s Executive Board gives final approval.