Shehbaz to announce Rs8 per unit power tariff reduction today
Prime Minister Shehbaz Sharif assured full support from the federal government for the development of Balochistan during a meeting with Chief Minister Sarfraz Bugti in Lahore on Wednesday.
He reiterated that Balochistan’s progress remained one of the government’s top priorities and said all necessary steps would be taken to support ongoing and future initiatives.
Both leaders held wide-ranging talks on the province’s economic, social, and security situation.
CM Bugti briefed the prime minister on the status of development projects currently underway across Balochistan.
He also extended Eidul Fitr greetings to the premier during the meeting.
In another development, Prime Minister Shehbaz Sharif is expected to announce a reduction in electricity prices during a high-level meeting on the power sector scheduled for today.
The prime minister will chair the meeting, which will also be attended by key federal ministers.
During the session, PM Shehbaz is expected to address the participants and announce the much-anticipated Rs 8 per unit reduction in electricity prices.
The meeting is set to take place at 2:00 PM.
The tariff adjustment results from multiple measures, including the cancellation of agreements with six Independent Power Producers, revising contracts with 16 IPPs under a “take-and-pay” model, shifting bagasse power plants’ currency from the US dollar to Pakistani rupees, and lowering the return on equity for government power plants to 13%, with the dollar rate fixed at Rs168.
Officials noted that the tariff reduction calculations also account for the impact of lower oil prices in the global market since March 16, 2025.
Maintaining current oil prices is expected to save approximately Rs168 billion, allowing a reduction of Rs1.30 per unit in power tariffs.
The government aims to make Rs6 per unit of the Rs8 reduction a permanent adjustment.
Additionally, sources indicate that the Rs35 PTV fee included in electricity bills may be removed starting in July 2025.
Further, Prime Minister Shehbaz Sharif will meet distinguished businessmen on Thursday to take them into confidence over the proposed power sector reforms, sources at the Ministry of Finance said on Wednesday.
Former caretaker minister for industries and commerce Gohar Ejaz will lead the businessmen delegation.
Major cut is expected in power tariffs during the prime minister’s meeting with businessmen, sources said.
A breakthrough is also likely over exports and other economic issues in the meeting.
It is to be mentioned here that the International Monetary Fund has recently allowed the government to reduce electricity tariffs by Re1 per kilowatt-hour for all consumers.
The relief will be financed through revenue collected via a levy imposed on captive power plants using natural gas, the IMF said in a statement.
The move is part of a broader relief package the government is working on for electricity users.
According to official sources, the reduction could lessen the financial burden on consumers by up to Rs100 billion.
