PM vows to reduce electricity tariffs for households and industries

Prime Minister Shehbaz Sharif has reaffirmed his commitment to reducing electricity tariffs for domestic consumers and industries through power sector reforms.

Chairing a high-level meeting on the implementation of power sector reforms, he directed officials to complete all planned reforms and initiatives within the stipulated timeframe.

During the meeting in Islamabad, a briefing was provided on the three-year targets for power sector reforms. Officials informed that due to ongoing reforms and an anti-theft campaign, the recovery rate of distribution companies had improved to 93.26% by December, 2024.

PM Shehbaz highlighted the positive outcomes of the reforms, stating that decades-long inefficiencies in the power sector were being addressed through coordinated efforts between the ministry and relevant institutions.

He stressed that the government remains committed to providing low-cost, environmentally friendly electricity to the public, adding that renegotiating agreements with Independent Power Producers (IPPs) has resulted in financial savings for the national treasury and a reduction in electricity prices.

He praised the anti-power theft campaign, noting that the reduction in losses suffered by distribution companies was a significant achievement and a testament to the dedication of the Ministry of Energy and supporting agencies.

He directed that the crackdown on power theft be intensified to achieve a 100% reduction in losses across all distribution companies.

The PM further stated that the appointment of reputable private sector professionals to the boards of distribution companies was yielding positive results. He instructed that similar appointments be made in companies where boards were yet to be formed.

Additionally, he underscored that the reduction in transmission losses was a direct outcome of the ongoing reforms and reiterated his commitment to further lowering tariffs for households and industries.

The meeting also included a comprehensive briefing on the power sector’s performance, outlining strategies for the phased reduction of circular debt, the establishment of competitive electricity markets, and the roadmap for tariff reductions.

Progress on major transmission line projects, including the 500 kV Matiari-Moro-Rahim Yar Khan and Ghazi Brotha-Faisalabad transmission lines, was also reviewed.

Officials provided updates on the dissolution of the National Transmission and Dispatch Company (NTDC) and the establishment of a new entity, the Energy Infrastructure Development and Management Company (EIDMC).

PM Shehbaz instructed authorities to ensure the timely completion of all reforms and projects to enhance efficiency and sustainability in the power sector.