Electricity tariff: PM announces electricity rate freeze for Low consumption households

In a bid to alleviate the financial burden on low consumption households, Prime Minister Shehbaz Sharif declared a significant subsidy on Electricity tariff  for the upcoming three months. Addressing concerns raised by citizens and amidst a backdrop of economic challenges, the Prime Minister’s announcement ensures that households ( Low consumption households ) consuming up to 200 units of electricity per month will not face any tariff increases until October.

The decision, estimated to cost the national exchequer approximately Rs50 billion, aims to provide relief during the peak summer months when electricity consumption typically spikes. Prime Minister Shehbaz emphasized that 94% of electricity consumers fall within this subsidized bracket, reflecting the government’s commitment to easing financial pressures on the majority of households.

This move comes in response to recent public outcry over planned Electricity tariff hikes, which were originally intended to secure an International Monetary Fund (IMF) loan. The Prime Minister underscored that the subsidy will be financed through the development fund of the national budget, highlighting the government’s proactive stance in mitigating the impact of rising utility costs on everyday Pakistanis.

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Additionally, consumers served by K-Electric will also benefit from the subsidized rates, ranging from Rs4 to Rs5 per unit during the subsidy period. Prime Minister Shehbaz assured citizens that the coalition government remains steadfast in its efforts to overcome economic challenges, urging unity in combating corruption and fostering sustainable economic growth.

The temporary freeze on electricity rates for protected consumers represents a strategic intervention aimed at stabilizing household budgets amid broader economic reforms. With the subsidy set to take effect from July through September, the government aims to alleviate immediate financial strains on households, promoting economic stability and resilience in the face of ongoing fiscal challenges.