PM Announces Rs 50 Billion Relief Package for 25 Million Domestic Power Consumers

Staff Report
ISLAMABAD: Prime Minister Shehbaz Sharif has unveiled a Rs 50 billion relief package to benefit around 25 million domestic power consumers. This initiative aims to provide a relief of up to seven rupees per unit for three months, covering the period until September.

The Prime Minister detailed that this package will offer a concession of Rs 4-7 per unit to consumers who use up to 200 units a month and fall under the protected category. This move is expected to benefit approximately 94% of the total consumer base. The announcement was made during a ceremony focused on addressing electricity bill issues and power sector reforms.Deputy Prime Minister and Foreign Minister visited Jagran-2 Hydropower Project

Shehbaz Sharif emphasized that the federal government redirected funds from its development budget to fulfill this commitment, in contrast to previous administrations’ unfulfilled promises. He assured the public of additional relief as the government gains fiscal space through measures like taxing the elite, broadening the tax base, shutting down non-performing entities, and stopping financial leakages.

During the event, the Prime Minister noted that the coalition government, over the past 16 months, prevented a national default by prioritizing public service over political interests.

Referring to the prior PTI-led government, he criticized its unfulfilled claims of eradicating corruption and recovering $300 billion from abroad. Instead, scandals like the sugar and wheat scams emerged, and funds from the UK’s National Crime Agency did not reach the national treasury. He also mentioned the adverse financial impact of the previous government’s abrupt reduction in oil prices for political gain.

Under Muhammad Nawaz Sharif’s leadership, the current government is committed to public service and addressing challenges to drive national progress. The Prime Minister announced an impending three-year agreement with the International Monetary Fund (IMF) and noted that the IMF is aware of the relief package for domestic power consumers.

Additionally, the federal and Balochistan provincial governments have agreed to solarize around 28,000 tube-wells in Balochistan to save Rs 80-90 billion annually, as many consumers default on power bill payments. Over the last decade, around Rs 500 billion has been lost this way. Consequently, the government plans to disconnect these tube-wells and solarize them at a cost of Rs 55 billion, shared between the federal and provincial governments.

This solarization model will extend to other provinces, as nearly a million tube-wells currently run on imported oil, impacting foreign exchange by $3.5 billion. A business model for this initiative is being developed.

In the recent annual budget, new taxes have been levied on the real estate sector to generate around Rs 100 billion. The Prime Minister acknowledged the justified protests from the salaried class about the tax burden, stressing the necessity for the elite to contribute back to the nation.

He highlighted the inefficiencies in the Pakistan National Shipping Corporation, which operates only 12 ships despite an annual budget of Rs 5 billion, compared to hundreds of ships in fleets of countries like Bangladesh. He underscored the need to combat corruption to save significant amounts of money.

The Prime Minister also pointed out that taxes worth Rs 1200 billion are being evaded at Karachi Port, along with Rs 2700 billion in pending tax claims in courts. He stressed the importance of eliminating these issues to foster national prosperity and reduce dependency on loans.

To achieve progress, he called for utilizing the country’s potential in agriculture, information technology, mining, and mineral sectors, and for the elite to play their part in the nation’s development.