Prime Minister Shehbaz Sharif is likely to announce power cuts today, on April 3rd, in a public address. The cut in the power rates has been long-awaited.
According to the media sources, the power tariffs are expected to be slashed by Rs.8 per unit. An important meeting in this regard is set to take place in the federal capital today.
The meeting will focus on various reforms in the energy sector that have led to the recent price decrease. Power Minister Awais Leghari will give an overview of the factors behind the proposed changes.
The expected price reduction stems from several strategic measures, including the termination of agreements with six Independent Power Producers (IPPs) and the renegotiation of contracts with 16 other IPPs under a take-and-pay model.
The tariff adjustment also considers the recent drop in global oil prices, which has saved the government Rs 168 billion. This saving is expected to help achieve an additional Rs1.30 cut in power tariffs.
Read more: US President Trump imposes 29% tariff on Pakistan
The International Monetary Fund is expected to approve the price cuts. In addition to the anticipated cuts, the government aims to make Rs6 of the Rs8 reduction a permanent fixture in electricity pricing. Reports also suggest that the government is also mulling over removing the PTV tax of Rs 35 from July 2025.
Meanwhile, globally, Pakistan might face competition in the global market following the imposition of a 29% reciprocal tariff on Pakistan.
President Donald Trump imposed a 29% reciprocal tariff on Pakistan’s exports to the USA. The sweeping reciprocal tariff has been imposed on 180 countries, triggering a major economic shake-up globally.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said while speaking in the White House Rose Garden. He defended the decision in the name of protecting American interests and creating balance in trade for America.