Key points
- We took difficult decisions to stabilise the economy: Shehbaz Sharif
- Says circular debt crisis is being permanently addressed
- Adds all other sectors are dependent on electricity
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has announced a relief in electricity prices for both domestic and industry consumers.
Addressing a ceremony on Thursday, the premier shared the economic progress achieved by his government, emphasising that Pakistan has successfully tackled financial challenges and prevented default.
Announcing a cut in electricity tariff, the prime minister said that the government has decided to lower the electricity tariff by Rs 7.41 per unit for domestic consumers while Rs 7.59 per unit for industrial users.
Circular debt
Shehbaz Shairf also highlighted the economic hurdles his government faced upon assuming office, stating that Pakistan was on the verge of bankruptcy with severe inflation, high circular debt, and a lack of funds to run power plants, Pakistan Television reported.
Radio Pakistan reported that the Prime Minister highlighted that successful negotiations with Independent Power Producers over the past year will help save 3,696 billion rupees. He said arrangements have been made to address the issue of circular debt which currently stands at 2393 billion rupees.
Shehbaz Sharif also expressed his determination to tackle power theft, which amounts to 600 billion rupees annually. He stressed the importance of privatizing all power distribution companies or transferring them to provincial authorities, according to Radio Pakistan.
He expressed satisfaction that the economy has now achieved fundamental stability. He commended cabinet members and the Chief of Army Staff for their contributions to the country’s progress, Radio Pakistan reported. He said difficult decisions will have to be taken to restore the true stature of the country in the comity of nations in general and the Muslim Ummah in particular. He said privatization and rightsizing are part of these efforts, Radio Pakistan further reported.
He mentioned that the petrol price has come down by thirty-eight rupees over the last one year. The policy rate has been reduced to twelve percent from 22.5 percent.
