Pakistan, March 19 -- Prime Minister Shehbaz Sharif will announce an Rs8 per unit cut in electricity tariffs effective April 1, 2025. This reduction follows approval from the International Monetary Fund (IMF) and will appear on consumer bills in May. The move aims to provide much-needed relief to consumers.

Out of the total Rs8 decrease, Rs4.73 will be a permanent reduction. This will come from renegotiating contracts with six Independent Power Producers (IPPs) and revising power purchase agreements for sixteen IPPs. Additionally, adjustments will also include delinking bagasse power plants from the US dollar to the Pakistani rupee.

The government's decision not to lower petroleum prices, despite their international drop, will factor in...