Islamabad:

Prime Minister Shehbaz Sharif was expected to announce a reduction of RS8 per year. Unit in the Electricity Stariff on March 23 in the following approval of the government’s proposal from the International Monetary Fund (IMF), Sources said Wednesday.

According to the sources, officials in the Ministry of Finance and the power department considered different opportunities to reduce electricity prices by RS2 per year. Unit, while the government was intended to complete a reduction of RS6 as a permanent adjustment.

“The proposal will end before March 23,” said one sources, adding that the reduced duty would implement from April 1. “That’s why electricity consumers will lower bills from May,” the source added. “Out of the total reduction of RS8 per unit, RS 4.73 per unit will be a permanent adjustment.”

The change in the tariff came after cancellation of contracts with six independent power producers (IPPs) and review of power purchase agreements with 16 IPPs and converted them into a ‘take-and-pay’ model, according to the sources.

Conversion of Bagasse-based power plants from the US dollars to Pakistani Rupie-How The US Dollar is set to RS168 and 13% Reduction on the return on equity (ROE) for the government’s power plants (GPPs) also contributed to the customs reduction.

Officials have said that the customs reduction is now calculated taking into account the effect of the prices of oil products that came down to the international market from March 16, 2025. The estimated fiscal effect of maintaining current oil prices is approx. RS168 billion.