Prime Minister Shahab Sharif unveiled a significant relief package on Tuesday, earmarking Rs 50 billion to provide relief to approximately 25 million domestic power consumers falling within the protected category. Addressing a gathering focused on electricity bill issues and power sector reforms, the Prime Minister highlighted the government’s commitment to public welfare.
“We have allocated Rs 50 billion today to provide relief ranging from Rs 4 to Rs 7 per unit for our protected category consumers using up to 200 units per month over the next three months, from July to September,” Prime Minister Shahab Sharif announced. This move aims to benefit around 94% of the total consumer base in Pakistan.
The Prime Minister emphasized that this financial allocation was redirected from the development budget to fulfill the government’s promise of public relief, contrasting it with the hollow promises of previous administrations. He assured further relief measures, citing fiscal space created through initiatives targeting the elite class, tax base expansion, closure of non-performing entities, and plugging financial leakages.
Reflecting on the government’s previous tenure, Prime Minister Shahab Sharif underscored their role in averting a national default over 16 months, despite facing significant challenges. He criticized past administrations for failing to deliver on promises of eliminating corruption and repatriating funds from abroad, instead highlighting scandals in commodities like sugar and wheat.
Regarding the power sector, the Prime Minister announced a strategic agreement with the International Monetary Fund (IMF) and stressed that the relief package for domestic power consumers had been communicated to the IMF. Additionally, he disclosed a recent agreement between federal and Balochistan provincial governments to solarize 28,000 tube-wells, estimating annual savings of Rs 80-90 billion due to defaulting power bill payments.
Prime Minister Shahab Sharif expressed concern over substantial financial losses incurred due to imported oil-dependent tube-wells, amounting to $3.5 billion annually in foreign exchange. He outlined plans to replicate the solarization model across other provinces, emphasizing the need for sustainable economic models.
“In the upcoming budget, we have introduced new taxes on the real estate sector, expecting to generate approximately Rs 100 billion in revenue,” Prime Minister Shahab Sharif stated. He acknowledged the burden faced by the salaried class and advocated for equitable taxation policies targeting the elite to foster economic growth.
Highlighting inefficiencies in national shipping and tax evasion challenges, Prime Minister Shahab Sharif called for stringent measures against corruption to secure the country’s economic future. He urged tapping into potential sectors such as agriculture, information technology, mining, and minerals to drive economic prosperity.
“These challenges and financial drains are hindering our progress. To build a prosperous nation, we must eliminate debt reliance and financial dependencies,” Prime Minister Shahab Sharif concluded, urging concerted efforts to hold the elite accountable and harness Pakistan’s economic potential.
The announcement drew attention to ongoing efforts by the government to stabilize the economy and ensure sustainable growth through strategic fiscal measures and sectoral reforms.
