• Tariff cut by Rs7.41 per unit for domestic consumers, Rs7.69 for industrial units
• Relief comes from QTA, savings from renegotiated IPP deals, diversion of petroleum, grid levies
• Premier claims economic stability secured; journey ahead requires ‘surgical operations’ at many levels

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday announced a reduction of about 12 to 17 per cent in electricity rates for various consumer categories through a combination of quarterly adjustments, savings secured from independent and state-owned power producers and diversion of petroleum and grid levies on oil and gas products.

Speaking at an event especially organised to announce the tariff cut, the prime minister said an “Eid gift” of Rs7.41 per unit reduction in the national average tariff and Rs7.69 per unit cut in industrial rates was the first humble relief to the con­sumers braving agonising energy costs.

He said the International Monetary Fund (IMF) had refused to allow diversion of financial impact of lower international oil prices last month towards reducing electricity rates and he himself des­ired to take up the matter with the IMF managing director as it did not involve any subsidy but simply not passing on reduction in international oil prices.

“It was not easy to convince the IMF. The impasse finally ended and they allowed us to reduce power rate like a favour,” he said, adding that the matter required to be handled with self-restraint, as the IMF programme was a trust of the nation that had been breached in the past and needed to be rebuilt.

The per-unit tariff reduction announced by the prime minister includes a cut of about Rs1.90 on account of lower quarterly tariff adjustments........

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