Premier Shehbaz Sharif has recently announced major relief for electricity consumers by reducing the price of electricity by Rs 7.41 per unit for domestic users and Rs 7.69 per unit for industrial consumers.
It is hoped that electricity prices will be further reduced in the near future.
The problem of circular debt should be permanently resolved over the next five years.
A significant reduction in electricity prices will help accelerate economic activities.
Now is the time for the government to fulfill the promises made in its manifesto.
The people have been severely affected by expensive electricity.
The sacrifices of the com-mon man for the sake of the country must be acknowledged.
Economic activities have also suffered greatly due to high electricity costs.
Expensive electricity hinders the development of all sectors.
A reduction in electricity prices is essential to advance the development process.
Since June 2024, prices have already been reduced by Rs 3.5 per unit.
Recently, there has been a further reduction of Rs 7.41 per unit for domestic consumers.
In June 2024, the electricity rate for industries was Rs 58.50 per unit, which was brought down by Rs 10.30 to Rs 48.19 through joint efforts.
Now, a further reduction of Rs 7.69 per unit has been announced.
Currently, the circular debt of the power sector stands at Rs 2,393 billion.
A permanent solution to this circular debt issue must be found.
Circular debt must gradually be eliminated within the next five years, but first, we must change ourselves.
Without reforming our attitudes and systems, we will not escape this debt trap.
Government power plants have been inactive for years, generating no electricity, yet billions of rupees are spent annually on salaries and benefits—this is a great injustice.
The bur-den of this mismanagement ultimately falls on the people.
Many of these power plants have now been sold transparently, generating Rs 9 billion, while Rs 7 billion had been spent annually on these idle, rusting units.
Following the reduction in electricity prices, structural reforms are urgently needed.
Electricity worth Rs 600 billion is stolen every year—this must stop.
Electricity prices should be reduced further through open market mechanisms.
Ordinary consumers are often harassed by the DISCOs; these companies must be either privatized or professionalized.
A permanent solution to the circular debt issue is essential.
Losses incurred by government-run power plants should also be addressed.
Annual expenditure on these inactive plants was Rs 7 billion.
Additionally, negotiations with IPPs should continue to bring further price reductions.
Convincing the IPPs was a significant achievement.
As a result of these negotiations, the nation will avoid paying Rs 3,696 billion in the coming years.
The additional payments expected over the tenures of these IPPs—ranging from 3 to 25 years, with an average of 15 years—will also be saved.
The benefit of falling oil prices must be passed on to the people, further lowering electricity costs.
The IMF’s trust had been shaken in the past.
It would be wise to keep the IMF informed about the steps being taken for national progress.
While moving forward, it’s also important to reflect on the past.
Not long ago, Pakistan faced a fragile economy and the threat of de-fault.
Those responsible for bringing the country to this brink were promoting chaos.
A particular group was convinced that Pakistan would go bankrupt.
However, the government’s hard work prevented this disaster.
That group crossed all limits to harm the country’s interests and created serious obstacles to efforts aimed at stabilizing the economy.
They used the state for personal political gain and even tried to sabotage the IMF program.
Despite this, the nation persevered through extremely difficult circumstances.
At one point, even opening LCs for importing fuel and essential items had become impossible.
Now, the country’s economy has achieved initial stability.
Microeconomic indicators have improved.
The army chief is fully supportive of efforts to stabilize the economy.
The government must now resolve issues holding the country back.
Bold steps and difficult decisions must be made to reach economic goals.
Fortunately, inflation has dropped to single digits.
A new dawn is on the horizon.
It would be unjust not to acknowledge the sacrifices of the common man during this difficult time.
Their patience and endurance made this turnaround possible.
Over the past year, petroleum prices have decreased by Rs 38 per liter.
Privatization and rightsizing are vital components of broader economic reforms.
Loss-making government institutions burden the treasury with over Rs 1,000 billion annually.
The government must focus on implementing reforms that strengthen institutions and make them profitable.
For sustainable development, increasing revenue is essential.
The target is to boost tax revenue by 35 percent.
There is great potential in the agricultural sector.
Only with unwavering determination can development be achieved.
The reform agenda must move for-ward, with concrete steps especially in the energy sector..
—The writer is author of several books based in UK. (naveedamankhan@hotmail.com)
