United Business Group (UBG) Patron-in-Chief S.M. Tanveer has urged the Prime Minister, Federal Minister for Energy, and the Special Investment Facilitation Council (SIFC) to further reduce the electricity tariff to Rs26 per kWh for consumers without delay.
Tanveer emphasized that this reduction is critical, especially following the government’s actions against Independent Power Producers (IPPs). He highlighted that while the tariff had already been brought down from Rs46 per kWh to Rs34 per kWh, industries are now expecting further relief to maintain productivity.
He noted that the government had revised 27 contracts with IPPs, and an inquiry into windmill projects is currently underway. The government is set to save Rs1.571 trillion in future payments to IPPs, and Tanveer stressed that these savings must be passed on to consumers immediately.
He dismissed concerns that the tariff reduction process was slowing down, stating that the FPCCI leadership is in active discussions with authorities. He expressed optimism that the electricity tariff would be reduced to Rs26 per kWh by next month.
Additionally, Tanveer pointed out that the federal minister has agreed that eliminating Rs1.1 trillion in capacity charges from the 1.2 billion units produced in Pakistan would bring the tariff down further to Rs11.50 per kWh.
Warning of severe consequences, Tanveer highlighted that high electricity tariffs are pushing industries towards closure, jeopardizing the livelihoods of millions of workers. He urged the government to announce the reduced tariff immediately to prevent economic instability and safeguard jobs.
