ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday approved a three-month Rs50 billion ($179.5 million) subsidy package for electricity consumers using up to 200 units per month after backlash from the salaried class over the tax-laden federal budget that sparked debate over the rising cost of living in Pakistan.
The announcement came after the government approved approximately 51 percent increase in the cost of electricity last week for low-income consumers, with an aim to meet one of the conditions laid out by the International Monetary Fund (IMF).
Faced with a prolonged economic crisis, the Sharif administration is trying to secure yet another staff-level agreement with the IMF for a bailout of more than $6 billion.
“The government will spend Rs50 billion which has been taken out from the development funds,” the prime minister said while addressing a ceremony on energy reforms in Islamabad. “We are providing the facility for three months from July, August and September to households that spend 200 units.”
He maintained the decision would benefit 25 million households, which constitute 94 percent of the domestic electricity users, adding they would only pay four to seven rupees per unit including K-Electric consumers.
“These three summer months are hard to cope with but electricity consumption also declines when the weather gets pleasant in October,” he added.
Pakistan produces expensive electricity due to a combination of factors including high reliance on imported fossil fuels, inefficient energy mix, substantial transmission and distribution losses apart from chronic issues like circular debt and regulatory inefficiencies.
The outdated infrastructure and inefficient power plants further exacerbate costs, while underutilization of domestic resources, such as hydropower and coal, add to the problem.
Additionally, fluctuations in foreign exchange rates and complex tariff structures contribute to higher electricity prices.
Pakistan PM approves $179.5 million for low-income electricity consumers amid cost-of-living crisis
https://arab.news/prtep
Pakistan PM approves $179.5 million for low-income electricity consumers amid cost-of-living crisis
- Shehbaz Sharif says the decision will benefit 25 million households constituting 94 percent of domestic consumers
- The three-month subsidy package is for people using up to 200 electricity units until the change of weather
UK announces ‘major reset’ of Pakistan development partnership with new trade, climate, education initiatives
- UK commits to increased investment-led cooperation in climate, business regulation and higher education
- London shifts from aid donor to investment-focused partner as bilateral trade crosses $7.3 billion
ISLAMABAD: The United Kingdom on Wednesday unveiled what it called a “major reset” in its development partnership with Pakistan, announcing new investment-focused cooperation, education programs and a bilateral climate compact during a visit by UK Minister for Development Jennifer Chapman.
The trip marks the first federal-level development dialogue between the two governments in eight years and reflects London’s shift from a traditional aid-donor role toward investment-based partnerships. The British government said the new approach aims to use UK expertise to help partner economies build capacity and unlock domestic growth.
Pakistan-UK trade has also reached a record high, crossing £5.5 billion ($7.3 billion) for the first time, with more than 200 British firms now active in Pakistan, an increase London says signals growing two-way commercial confidence.
“Pakistan is a crucial partner for the UK. We work together to tackle the drivers behind organized crime and illegal migration, keeping both our countries safer,” Chapman was quoted as saying in a statement by the British High Commission in Islamabad.
“Our strong bilateral trading relationship brings jobs and growth to us both. And we’re working together to tackle climate change, a global threat.”
The minister and Prime Minister Shehbaz Sharif on Tuesday jointly launched a package of business regulatory reforms aimed at improving Pakistan’s investment climate and making it easier for UK firms to operate. Officials said the initiative supports Pakistan’s economic recovery agenda and creates new commercial avenues for British companies.
A second key announcement was the next phase of the Pak-UK Education Gateway, developed with the British Council and Pakistan’s Higher Education Commission. The expanded program will enable joint research between universities in both countries, support climate- and technology-focused academic collaboration, and introduce a startup fund to help commercialize research. The Gateway will also promote UK university courses delivered inside Pakistan, giving students access to British degrees without traveling abroad.
Accompanied by Pakistan’s Minister for Climate Change Dr. Musadik Malik, Chapman also launched a Green Compact, a framework for climate cooperation, green investment, environmental protection and joint work at global climate forums.
The UK emphasized it remains one of Pakistan’s largest development partners, citing ongoing work in education, health, climate resilience and anti-trafficking capacity building.
During the visit to Pakistan, Chapman will meet communities benefiting from UK-supported climate programs, which London says helped 2.5 million Pakistanis adapt to climate impacts in the past year, and observe training of airport officers working to prevent human trafficking.
“We remain firm friends of Pakistan, including in times of crisis, as shown through our floods response,” Chapman said. “And we know to accelerate growth in both our countries, we must work together in partnership to tackle the problems we face.”
