PM Announces Electricity Price reduction across the board

PM Shahbaz Sharif today announced a reduction in electricity prices across the board, and it is done after complete deliberation with the IMF and its conditions. Yesterday, it was announced by all the media outlets that the PM would announce something big by today for the overall sectors in Pakistan, and it will be related to electricity. Moreover, electricity prices are the major issue of Pakistan and even more severe than the corruption issue, as they are the major reason Pakistan's exports are uncompetitive, and due to this issue, other countries take advantage of Pakistan's uncompetitiveness. Cutting the prices or reducing the prices of electricity is a prime focus of the current government.

Against the backdrop, the PM of Pakistan was working to reach a deal with the majority of the IPPs to resolve the issue of Pakistan's massive circular debt and to cut the price of electricity, and this is one of the reasons Pakistan has announced the relief for the public and Pakistan's large-scale manufacturing industries, including export industries. PM Shahbaz Sharif announced that they are cutting electricity prices by 7.41 per unit reduction for domestic consumers, which will make it 34 rupees per unit for electricity costs. The PM also announced a slash of 7.59 electricity rupees per unit for industries, including exporting industries, as well as to make Pakistan's exporting industries more competitive. Aim is to reduce electricity price to increase electricity consumption.

The PM said that the electricity price reduction is done by keeping the IMF conditions in mind, and we have had a brief deliberation with the IMF on this issue as well. PM Shahbaz Sharif said that we have to keep the IMF program in mind, as Pakistan has major external debts repayment issue, which is the major reason Pakistan is committed to the IMF program. Therefore, reducing electricity price during IMF program is a very though task.  

This is welcome news for Pakistan after the US announced an overall tariff on major countries, including Pakistan. This will help to navigate the impact on Pakistan's exports to the US, and Pakistan must find alternative options for exporting their products, as the US does not seem to be in a mood to help any country or boost other countries' exports.