In a significant move to ease the financial burden on consumers, Prime Minister Shehbaz Sharif has announced a major reduction in electricity prices in Pakistan, offering much-needed relief across domestic, commercial, industrial, and agricultural sectors. The decision follows the approval of the International Monetary Fund (IMF) and the subsequent recommendation submitted by the government to the National Electric Power Regulatory Authority (NEPRA).
New Electricity Tariffs in Pakistan 2024
The electricity tariffs have been slashed substantially with the average price of electricity being reduced by Rs7.41 per unit, lowering the cost from Rs45.05 to Rs37.64 per unit for many consumers. This relief package is expected to positively impact millions of households and businesses already burdened by inflation.
Updated Power Tariff Breakdown:
- Domestic Consumers:
- Relief: Rs7.15 per unit
- New Tariff: Rs37.90 (previously Rs45.05)
- Commercial Consumers:
- Relief: Rs8.58 per unit
- New Tariff: Rs62.47 (down from Rs71.06)
- Industrial Consumers:
- Relief: Rs7.69 per unit
- New Tariff: Rs40.51 (reduced from Rs48.19)
- General Services:
- Relief: Rs7.18 per unit
- New Tariff: Rs49.48 (previously Rs56.66)
- Bulk Supply:
- Relief: Rs7.18 per unit
- New Tariff: Rs47.87 (from Rs55.05)
- Agricultural Sector:
- Relief: Rs7.18 per unit
- New Tariff: Rs34.58 (down from Rs41.76)
NEPRA Approves Cuts After IMF Greenlight
The revised electricity tariffs were officially approved by NEPRA, following an earlier proposal from the federal government. This reduction aligns with the IMF’s recommendation to provide targeted relief while ensuring economic stability.
According to the Prime Minister, the relief package not only benefits end-users but also supports broader economic activity by making electricity prices in Pakistan more competitive for industries and services.
Impact on PSX and Economic Outlook
The announcement has already had a positive ripple effect on the Pakistan Stock Exchange (PSX), with investors reacting favorably to the anticipated reduction in industrial operating costs. Market analysts predict that lower power tariffs could boost production and improve profitability for sectors heavily reliant on energy consumption.
K-Electric Consumers Also to Benefit
Residents of Karachi and K-Electric consumers are expected to benefit from the nationwide tariff relief as the new pricing model is implemented across all DISCOs, subject to final adjustments by NEPRA.
This landmark decision marks a turning point in the government’s effort to combat rising living costs and energize industrial growth. The reduction in electricity tariffs will provide immediate economic relief and is likely to play a pivotal role in boosting consumer confidence and business sentiment.
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