ISLAMABAD: Prime Minister Shehbaz Sharif is poised to announce a significant relief for Pakistani households and businesses, with an expected reduction of Rs8 per unit in electricity tariffs on March 23, 2025. The move, if confirmed, could ease the financial strain on millions grappling with soaring energy costs.
Sources close to the government suggest the decision stems from ongoing efforts to renegotiate power purchase agreements with independent power producers (IPPs) and streamline subsidies. The announcement, slated for a public address, follows months of pressure from consumers and industries hit hard by inflation and high utility bills. “This is about delivering on our promise to support the people,” a senior official hinted, speaking anonymously ahead of the official word.
The proposed cut would lower the average tariff—currently hovering above Rs40 per unit for many domestic users—offering a breather amid economic challenges. It aligns with the government’s talks with the International Monetary Fund (IMF), which has urged reforms in the energy sector, though typically resists broad subsidies. Insiders say the reduction may target specific consumer slabs, with details to be clarified in the PM’s speech.
Energy experts see this as a balancing act. “An Rs8 cut could boost consumption and industrial output, but funding it without straining the budget or circular debt will be key,” noted an analyst. The timing, just before Ramazan’s end, also suggests a populist touch, aiming to lift public morale.
While the government has yet to confirm specifics, anticipation is building. If delivered, the relief could mark a rare win for Sharif’s administration, which has faced criticism over economic management. All eyes are now on March 23 for what could be a game-changer in Pakistan’s power landscape.
