Prime Minister Shehbaz Sharif has announced a three-month relief package for lifeline consumers of electricity, benefiting 25 million domestic consumers. The package, worth Rs50 billion, will provide a discount of up to Rs7 per unit for consumers using up to 200 units per month from July to September. This move aims to provide relief to 94% of the country’s domestic electricity consumers.
Addressing a press conference in Islamabad, PM Shehbaz said the government has allocated Rs50 billion from its development budget to fund this relief package. He assured further relief as the government achieves fiscal space through taxation of the elite class, expanding the tax net, and plugging financial leakages.
The government had previously approved a 51% increase in electricity rates but decided to retract it due to public outcry and potential political backlash. Instead, the government will subsidize the revenue gap of Rs50 billion through innovative tariff setting.
This decision comes as part of the government’s efforts to provide relief to the public and fulfill its commitment to the International Monetary Fund (IMF). PM Shehbaz also announced plans to solarize 28,000 tube wells in Balochistan, saving Rs80-90 billion annually.
