PM Shahbaz Sharif Rejects Proposal to Increase Electricity Prices

Prime Minister Shahbaz Sharif has rejected the proposal to increase electricity prices for consumers utilizing up to 200 units. The federal government aims to provide relief to protected consumers by subsidizing electricity bills for usage up to 200 units. The premier has directed against raising tariffs for those consuming up to 200 units and has disregarded the economic team's recommendation in this regard.

It is estimated that around 20 million protected consumers will benefit from a subsidy on electricity rates in the forthcoming budget for the fiscal year 2024-25. The hike in electricity tariffs for larger consumers will be implemented from the first month of the new fiscal year. The government plans to allocate a subsidy of Rs160 billion to protected consumers until the conclusion of the current fiscal year.

The federal government is scheduled to unveil the budget for 2024-25 on June 10 before pursuing a new International Monetary Fund (IMF) bailout package. The budget presentation, originally planned for June 7, was postponed due to Prime Minister Shehbaz Sharif's official visit to China from June 4 to June 8.

The decision to subsidize electricity bills for consumers using up to 200 units reflects the government's commitment to providing relief to a significant portion of the population. By prioritizing the protection of vulnerable consumers from tariff hikes, the government aims to ensure equitable access to essential services while managing the country's economic challenges effectively.