https://arab.news/bry95
- PM Shehbaz Sharif says the initiative will alleviate financial pressure on consumers, stimulate economic activity
- Relief package will reduce tariffs for domestic, industrial and commercial users for three months starting December
ISLAMABAD: Prime Minister Shehbaz Sharif announced on Friday a three-month electricity relief package starting in December, aimed at reducing tariffs for domestic, industrial and commercial consumers.
The announcement comes after the government faced widespread protests earlier this year over rising inflation and high electricity costs following the presentation of its first budget in June. Political parties urged the Sharif administration to renegotiate agreements with independent power producers to lower tariffs.
Pakistan’s manufacturing sector has also expressed concerns over the years due to the rising cost of electricity, saying the elevated power tariffs render national exports uncompetitive in the global market.
“The government has decided to offer an electricity relief package for the three winter months of December, January and February, providing substantial reductions in electricity prices for additional usage,” the prime minister said during a ceremony in Islamabad.
“Under this package, domestic consumers will pay a flat rate of Rs26.07 per unit for incremental electricity usage, resulting in savings of Rs11.42 to Rs26 per unit for household users,” he continued. “The package will apply across Pakistan.”
Electricity consumers in the country pay their bills according to the number of units that fall into various slabs, each with its own tariff rates.
Under the new winter package, industrial consumers will benefit from savings ranging between Rs5.72 and Rs15 per unit, according to Sharif, translating to an 18 percent to 37 percent reduction in electricity costs.
Commercial consumers are set to save between Rs13.46 and Rs22 per unit, equating to overall savings of 34 percent to 47 percent.
Sharif also emphasized the broader economic benefits of the initiative, saying it would alleviate financial pressures on consumers and stimulate economic activity in the country.
“With reduced electricity costs, industries will grow across Pakistan, agriculture will flourish, business and exports will expand, production will increase and Pakistan’s economy will strengthen further,” he said.