Islamabad (Web Desk):In a significant move aimed at providing relief to the public from soaring electricity prices, the federal government has decided to abolish the Provincial Electricity Duty. This step is expected to bring tangible reductions in electricity bills and ease the financial burden on consumers.
According to sources, Prime Minister Shehbaz Sharif and Federal Minister for Power Owais Leghari have repeatedly promised relief in electricity tariffs. Now, moving toward practical implementation, the government has officially sent letters to all provincial chief ministers requesting cooperation in removing the electricity duty.
In the letter, the federal minister stated that excessive charges in electricity bills, including the provincial duty, have become a heavy burden on the public. The government has decided that starting July 2025, this duty will be removed from electricity bills, allowing consumers to pay only the actual cost of electricity.
The federal government has also proposed that provinces develop alternative revenue collection mechanisms to compensate for the expected shortfall.
It is worth noting that Pakistan is among the countries with the highest electricity tariffs in the world. To tackle this issue, the federal government began negotiations last year with Independent Power Producers (IPPs), many of whom have agreed to lower electricity prices.
Finance Minister Muhammad Aurangzeb has also hinted at positive progress, stating that discussions with IPPs are proceeding smoothly and cheaper electricity will soon be a reality.
The government had shared its power subsidy reduction plan with the IMF before the federal budget, including a strategy to reduce electricity prices through the Captive Power Levy.
