Prime Minister Shehbaz Sharif is expected to announce a reduction in electricity tariffs today, following approval from the International Monetary Fund (IMF). Defence Minister Khawaja Asif indicated that the premier would address the nation to deliver this “good news,” highlighting the government’s commitment to national service and economic recovery.

In conjunction with this announcement, the Prime Minister is scheduled to meet with leading business figures in Islamabad, including cabinet members and 336 business tycoons, to discuss power sector reforms. This initiative aims to foster collaboration between the government and the business community to enhance the country’s economic landscape.

The federal government had previously submitted a request to the National Electric Power Regulatory Authority (Nepra) for a reduction of Rs1.71 per unit in electricity prices, proposing an increase in the tariff differential subsidy to facilitate this cut. The reduction is intended to apply to all distribution companies, including K-Electric, from April to June 2025, with lifeline domestic consumers exempt from this adjustment. Nepra has scheduled a hearing on this petition for April 4.

Earlier, the IMF approved a reduction of Re1 per unit in electricity tariffs, offering relief to all consumers. This tariff relief is to be financed through revenue generated from the levy imposed on gas-based captive power plants. The development follows a staff-level agreement reached between the IMF and Pakistani authorities during the first review of the ongoing 37-month bailout programme.

These measures reflect the government’s efforts to alleviate the financial burden on consumers and stimulate economic growth through strategic power sector reforms.