Pakistan PM announces major reduction in power prices

Islamabad, April 3 (IANS) Pakistan Prime Minister Shehbaz Sharif has announced a major relief for domestic consumers of electricity, reducing per unit price by Rs 7.41 while promising more relief for the citizens in the coming days. The announcement has been welcomed as it brings the much-needed relief to consumers who have been suffering due to high inflation, inflated electricity bills and soaring fuel prices.

Sharif also announced a reduction in commodity prices of industrial units by Rs 7.59 during a special event attended by cabinet members and business community on Thursday.

The announcement comes a month after the government negotiated and convinced the International Monetary Fund (IMF) for reduction in electricity prices, which was later on approved by the country's National Electric Power Regulatory Authority (NEPRA). The IMF allowed Pakistan to reduce utility rates by Rs 1 per kilowatt.

"When we took office, the country was on the brink of default and the IMF was unwilling to negotiate. Our government faced numerous obstacles and worked tirelessly to prevent Pakistan from defaulting. However, today, the time has come to fulfill the promises made in the party's manifesto," the Pakistan PM said.

Interestingly, Shehbaz Sharif thanked the Pakistan Army Chief General Asim Munir and the military establishment for extending full support in bringing the country's economy to shore.

Talking about his government's performance, the PM said Pakistan continues to have the lowest petroleum prices in the region, adding that during his government's tenure, the interest rates dropped from 22 per cent to 12 per cent, while inflation had dropped from 38 per cent to single digit.

"Pakistan's economy is moving from darkness to light. Economic stability has been achieved, and now it's time for Pakistan to rise. Without a reduction in power costs, progress in industry, trade, and agriculture would not be possible. The IMF initially refused to allow a reduction in electricity prices, but we insisted that instead of lowering petrol prices, relief should be provided through electricity," he said.

Talking about another major challenge the country faces with regard to the circular debts, Shehbaz Sharif said that a strategy and plan has been formulated to address the matter.

"This debt will no longer keep circulating – it will be eliminated once and for all. It would be completely eradicated within the next five years," he said.

--IANS

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