PM announces massive Rs7.41 per unit drop in power rates

In a bid to provide financial relief to the masses, Prime Minister Shehbaz Sharif has announced a massive 7.41 rupee cut in power rates across Pakistan. As per credible reports, the slash in rates is expected to alleviate pressures on household finances, as electricity bills will become more manageable now.

The announcement came at an event in Islamabad where Shehbaz Sharif extended his congratulations to Pakistanis. Reports claim that the premier and his core team have worked hard to achieve the rate cut.

The rate cut is not uniform, however, as electricity prices for industries have noticed a larger fall of 7.59 rupees. A recent report outlined the extortionate power prices that Pakistani industrialists have to face - which often exceed electricity prices of neighboring India and even the European Union.

With electricity prices recording a substantial fall, industrialists and exporters might be on track to regain a competitive edge in the international market. With United States President Donald Trump's 29 percent tariff on imports from Pakistan dampening export competitiveness, domestic manufacturers needed this rate cut to maintain their level of competitiveness. 

Prior to the announcement, the federal government’s official X (formerly Twitter) account outlined how good news would be given to Pakistan today. To the amusement of netizens, the post contained the hashtag ‘Small Eid, Big Gift'.

While the post did not allude to any slashes in power rates, independent analysts were speculating that an 8 rupee cut in electricity rates would be announced on March 23 (Pakistan Day). However, no such announcement was made at that point in time given the ongoing nature of the government’s negotiations with the International Monetary Fund’s (IMF) team.

Instead of announcing a drop in prices, Shehbaz Sharif chaired a meeting pertaining to the power sector as tariff reductions were not approved by the IMF. However, he reassured all relevant stakeholders that a drop in power rates would be announced despite the hiccup with the IMF.

Some believe that the drop in power rates has come at the expense of the transport sector as petroleum prices remain unchanged despite a potential 13 rupee per liter cut expected by the oil and gas regulatory authority (OGRA).

Fuel prices have not been revised downwards in an attempt to pass the benefit to electricity consumers. Federal ministers have taken to social media to praise the relief package, labelling it as a plan that could ‘thwart Pakistan’s default plot’