Islamabad, April 3, 2025: Prime Minister Shehbaz Sharif has announced a Rs7.59 per unit reduction in electricity prices as part of the government’s new power package aimed at easing the financial burden on consumers. The decision, unveiled at an event in Islamabad, follows approval from the International Monetary Fund (IMF) and aligns with broader reforms to tackle high energy costs.
“The country cannot progress without a significant reduction in electricity prices,” PM Shehbaz stated, calling the move a major milestone for his administration.
The Prime Minister highlighted key reforms, including renegotiated agreements with Independent Power Producers (IPPs), which have saved Rs3,696 billion for the national exchequer. “This amount was originally meant to be paid to IPPs,” he said, emphasizing the financial relief brought by these measures.
He also announced a five-year plan to eliminate circular debt, contingent on behavioral changes and stricter oversight.
Detailing the price cuts, PM Shehbaz noted that the per-unit cost of electricity, which stood at Rs58.35 in June 2024, had already been reduced to Rs48.19, marking a Rs10.3 per unit decrease. With today’s additional Rs7.59 per unit reduction, the government aims to provide further relief to consumers.
PM Shehbaz underscored the annual Rs600 billion losses due to electricity theft, stating that the burden of these losses unfairly impacts the poor, widows, and orphans. He called for stricter enforcement measures to combat this issue.
Additionally, the Prime Minister proposed the creation of an open market in the electricity sector to foster healthy competition and further reduce tariffs.
He assured that these initiatives were undertaken to provide relief to the people and improve economic conditions, especially in light of rising energy costs.
The announcement was made during a high-level meeting attended by senior federal ministers and officials.
