Prime Minister Shehbaz Sharif Announces Relief Package for Lifeline Electricity Consumers
Prime Minister Shehbaz Sharif has declared a three-month relief period for lifeline electricity consumers using less than 200 units per month. The government will provide a Rs50 billion discount to these consumers in July, August, and September, benefiting around 25 million people, which accounts for 94% of the country’s domestic electricity consumers.
Following public outcry, the government decided to retract the 51% tariff increase for protected consumers that was approved last week to comply with an International Monetary Fund (IMF) requirement. The decision was made after concerns were raised about the public’s anger due to accumulated bills during Eidul Azha and increased consumption in hot weather.
Prime Minister Shehbaz instructed the federal cabinet to revise the summary urgently, exempting protected consumers from the hike. The revenue gap of around Rs50 billion will be covered by government subsidies and new tariff arrangements. The tariff adjustment is set to take effect from July 1, 2024, for all electricity distribution companies.
Stay tuned for more updates on this developing story.