PM Shehbaz Announces Major Power Tariff Cut to Ease Consumer Burden

On April 3, 2025, Prime Minister Shehbaz Sharif announced a nationwide reduction in electricity tariffs, aiming to alleviate the financial burden on consumers. The relief package includes a Rs7.41 per unit decrease for domestic users and a Rs7.59 per unit reduction for industrial consumers. This adjustment brings the average rates down to 34.47 rupees for households and 40.60 rupees for industries. 

The Prime Minister acknowledged the challenges faced in securing approval from the International Monetary Fund (IMF) for these cuts, crediting the successful negotiations to recent power sector reforms and a $7 billion IMF bailout. He emphasized the government’s commitment to further reforms, particularly in combating electricity theft, which accounts for losses of approximately Rs600 billion. 

Additionally, the government plans to reinvest savings from declining global oil prices into the power sector, aiming to enhance its efficiency and sustainability. These measures come as Pakistan’s economy shows signs of stabilization, with inflation decreasing to single digits and interest rates dropping by nearly 10 percentage points over the past year, fostering business growth in the country’s $350 billion economy. 

The announcement has been well-received, with the Pakistan Stock Exchange reaching an all-time high of 118,000 points, reflecting increased investor confidence. 

This tariff reduction is part of the government’s broader efforts to support industries, agriculture, and exports, contributing to the nation’s economic revival.