PM Shehbaz expects ‘substantial reduction' in electricity prices in coming months

• PM expresses optimism about the country’s economic revival.
• Reiterates govt’s commitment to fostering progress.
• Reaffirms stance on downsizing and rightsizing public entities. 

ISLAMABAD: As the industrial and agricultural sectors face challenges due to high power tariffs, Prime Minister Shehbaz Sharif reaffirmed that the government was working tirelessly to bring substantial reductions in energy costs in the coming months.

"A competitive industrial sector is essential for economic growth, and we are committed to easing the cost of doing business," the premier said while addressing a ceremony in Islamabad on Monday.

The federal government was under immense pressure to reconsider its power purchase agreements (PPAs) with the independent power producers (IPPs) following outcry across the country as the addition of capacity payment charges inflated the power bills beyond the affordability of the inflation-burdened masses.

Last month, the federal cabinet approved "settlement agreements" with eight independent power producers (IPPs) running on bagasse — a move that the government says would benefit the national exchequer by Rs238 billion.

These bagasse-based power plants included DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries and Chinar Industries.

Separately in Oct, the premier announced the pre-mature termination of power purchase agreements (PPAs) with the five oldest IPPs, with annual savings of Rs60 billion or around Rs411bn over the remaining term of their contracts.

Addressing the ceremony today, PM Shehbaz assured extensive efforts of the incumbent government to ensure ease of doing business and trade facilitation to businessmen for reviving economic growth.

He expressed optimism about the country’s economic revival and reiterated the government’s commitment to fostering progress across various sectors.

He highlighted the government’s efforts to stabilise the economy, noting that inflation has reduced below 5%, and the banking policy rate was under 13%.

He emphasised the growth in exports, particularly in the IT sector, and outlined the government’s vision for economic development in agriculture, industry, IT, mining, and minerals.

The prime minister reaffirmed the government’s stance on downsizing and rightsizing public entities to reduce government expenses.

Announcing a new initiative for the privatisation of Pakistan International Airlines (PIA), he invited Pakistani investors to participate in a transparent bidding process.

“Just as banks were successfully privatised during the 1990s under [then] prime minister Nawaz Sharif and are now thriving, PIA too will be transformed into a world-class airline, just as it was in the 1960s,” he stated.

He assured the audience that Pakistan is on track to conclude its final IMF programme.

The prime minister highlighted ongoing efforts to remove obstacles to foreign investment, noting that initiatives to improve the ease of doing business will soon be launched.

“Pakistan will resurrect as a great nation through the collective efforts of stakeholders and nation-builders,” he added.