Prime Minister (PM) Shehbaz Sharif has announced that a reduction in electricity prices will be introduced soon, providing much-needed relief to consumers.
Chairing a review meeting on the Power Division, the premier reaffirmed the government’s commitment to renewable energy and assured that there has been no change in its solar energy policy. He stated that ongoing reforms in the power sector aim to bring further financial relief to the public.
During the meeting, the Prime Minister directed officials to counter misinformation regarding the solarisation policy with facts and figures. He also instructed authorities to expedite the privatisation process of electricity distribution companies.
The government plans to cut the electricity tariff by Rs8 per unit.
The current tariff structure includes around nine components, and a review of these could potentially reduce electricity rates by Rs10 to Rs12 per unit. However, the International Monetary Fund (IMF) has reportedly rejected the removal of taxes from electricity bills due to the Federal Board of Revenue’s (FBR) low recovery rate, and the provinces are unwilling to abolish electricity duty. As a result, the expected reduction is approximately Rs8 per unit.
The current base price of electricity is Rs35 per unit, excluding taxes and surcharges. Consumers have already received some relief through negative adjustments in the Quarterly Tariff Adjustment (QTA) and Fuel Charge Adjustment (FCA).
A federal minister had revealed that the prime minister intended to announce a tariff reduction on March 23, 2025. However, no such announcement was made on the day.
