Islamabad, April 2, 2025 – Prime Minister Shehbaz Sharif is poised to deliver a significant relief package for electricity consumers, with an announcement slated for tomorrow, April 3. During a pivotal meeting on the energy sector at 2:00 pm, the PM is expected to reveal an Rs8 per unit reduction in power tariffs, a move aimed at easing the financial burden on households and businesses alike, according to sources close to Express News.
The high-level session, attended by top federal ministers, will spotlight the government’s multi-pronged strategy to slash electricity costs. Key measures include terminating contracts with six Independent Power Producers (IPPs) and renegotiating terms with 16 others under a flexible “take-and-pay” framework. Additionally, bagasse-based power plants will now operate in Pakistani rupees instead of US dollars, while the return on equity (ROE) for state-owned power plants has been capped at 13%, with the dollar rate locked at Rs168.
This tariff relief also reflects a sharp decline in global oil prices since mid-March. Officials estimate that maintaining current oil rates could save Rs168 billion, contributing Rs1.30 per unit to the reduction. The International Monetary Fund (IMF) has greenlit the plan, endorsing a three-month freeze on oil prices to support this initiative.
Of the Rs8 per unit cut, Rs6 is intended as a long-term adjustment, signaling sustained relief for consumers. In a further boost, the government is mulling the elimination of the Rs35 PTV fee from electricity bills starting July, a small but symbolic gesture.
PM Shehbaz is expected to address the nation during the meeting, framing the tariff cut as a cornerstone of his administration’s efforts to stabilize the economy and provide tangible benefits to citizens grappling with rising costs. With energy reforms taking center stage, all eyes are on tomorrow’s announcement.
