PM Shehbaz to announce Rs8 per unit electricity price cut tomorrow

Prime Minister Shehbaz Sharif is expected to announce a significant reduction in electricity prices during a high-level meeting on the power sector scheduled for tomorrow.

According to sources, the meeting will be chaired by Prime Minister Shehbaz and will include key federal ministers. During the session, the Prime Minister is likely to address the participants and announce an Rs8 per unit reduction in electricity prices.

The price reduction comes after a series of measures aimed at reducing the financial burden of power tariffs. These include the cancellation of agreements with six Independent Power Producers (IPPs), renegotiating contracts with 16 IPPs under a "take-and-pay" model, adjusting the currency for bagasse power plants from US dollars to Pakistani rupees, and reducing the return on equity for government power plants (GPPs) to 13%, with the dollar rate fixed at Rs168.

Additionally, the tariff reduction calculations take into account the impact of declining global oil prices since March 16, 2025. This adjustment is expected to save around Rs168 billion, contributing to a Rs1.30 per unit reduction in electricity tariffs.

The International Monetary Fund (IMF) has agreed to approve the tariff relief, recognizing the government’s decision to freeze oil prices for three months.