Key Points
Electricity prices cut by Rs 7.41 per unit
IMF negotiations crucial for economic relief
Power sector reforms promise significant transformation
Circular debt to be eliminated within five years
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.
Comments:
Ali K.
Finally some good news! The electricity bills were becoming unbearable for middle class families. Hope this relief actually reaches the people 🙏
Saima R.
I appreciate the effort but I'll believe it when I see it reflected in my bill. We've had too many promises before that never materialized. The real test will be implementation!
Farhan J.
Reducing power costs is crucial for our industries to compete internationally. This could be a game-changer if properly executed. The PM seems serious about economic reforms.
Nadia Z.
While I welcome the reduction, I'm concerned about how they plan to eliminate circular debt in 5 years. That seems overly optimistic given our track record. Would love to see the actual plan details.
Tariq A.
The mention of army support in economic matters is interesting. Shows how crucial institutional coordination is for economic stability. Hope this brings long-term benefits 🇵🇰
Sana H.
This is a good first step, but we need comprehensive reforms in our energy sector. The reduction is welcome but won't solve our structural problems. Still, better than nothing!
