Islamabad, April 3, 202: Prime Minister Shehbaz Sharif is set to announce an Rs8 per unit reduction in electricity prices during a high-level meeting on the power sector today. The meeting, scheduled for 2:00 PM, will be chaired by the premier and attended by key federal ministers.
The tariff cut stems from multiple measures, including cancellation of agreements with six Independent Power Producers (IPPs), revised contracts with 16 IPPs under a “take-and-pay” model, switching bagasse power plants from US dollar-based tariffs to Pakistani rupees and lowering the return on equity (ROE) for government power plants to 13%, with the dollar rate fixed at Rs168.
Officials noted that falling global oil prices since March 16 also contributed to the tariff adjustment. By freezing domestic oil prices for three months, the government expects to save Rs168 billion, facilitating a Rs1.30 per unit tariff reduction. The IMF has approved this relief package.
The government aims to make Rs6 per unit of the Rs8 cut permanent. Additionally, sources suggest the Rs35 PTV fee in electricity bills may be removed from July.
