Govt to slash power tariffs soon: Leghari
1. "Reduction will happen at the right time, whether two days earlier or later," says power minister
Govt to Lower Electricity Tariffs Soon, Says Power Minister
ISLAMABAD/LONDON/LAHORE: The government will soon reduce electricity tariffs, Power Minister Awais Leghari announced on Tuesday, as it seeks to tackle rising concerns over high energy costs. He assured that the reduction is imminent and will be evident in the coming days.
“The cut will happen at the right time, whether two days earlier or later,” Leghari stated, hinting that Prime Minister Shehbaz Sharif would soon share “good news” on electricity prices. Speaking to reporters after inaugurating Pakistan’s first-ever 120-kilowatt fast-charging station in Islamabad, he dismissed speculation that power tariffs would remain unchanged.
Addressing concerns over fuel pricing, Leghari reaffirmed the government’s commitment to providing relief. “We stand by our promise—our commitments are not like those of the previous government,” he said when questioned about possible compensation for fuel pricing decisions.
His remarks follow growing public frustration after an expected Rs8 per unit tariff cut failed to materialize in the prime minister’s Pakistan Day speech. Despite a global drop in oil prices, the government opted to maintain fuel rates on March 15, increasing the petroleum levy by Rs10 per litre instead. Authorities had pledged that financial savings from this decision would be directed toward reducing electricity tariffs.
At the inauguration event, the minister also announced a major reduction in electric vehicle (EV) charging rates, slashing them from Rs71 to Rs39 per unit. He emphasized the government’s push for clean energy adoption and praised private-public partnerships for driving sustainable initiatives.
Leghari highlighted how projects like GoGreen Avenue’s fast-charging station are transforming Pakistan’s energy and transportation sectors. “We are determined to lead Pakistan into a clean energy era. This successful launch reflects our dedication to reducing carbon emissions and promoting electric mobility,” he added.
Govt Fast-Tracks PIA Privatization, Eyes Completion by July
In a significant move, the federal cabinet’s privatization panel has approved an accelerated plan to sell a 51% to 100% stake in Pakistan International Airlines (PIA), including management control, as part of efforts to offload the struggling national carrier. The initiative aligns with Islamabad’s commitments under the International Monetary Fund (IMF) program, with the privatization targeted for completion by July.
Chairing the Cabinet Committee on Privatization (CCoP) meeting, Deputy Prime Minister Ishaq Dar reaffirmed the government’s resolve to push through the sale. He emphasized that privatization aims to unlock PIA’s potential while easing its burden on public finances. The move is part of broader economic reforms aimed at curbing fiscal deficits and restructuring loss-making state-owned enterprises.
Officials anticipate interest from both local and international investors, particularly strategic buyers with the expertise to overhaul PIA’s operations. Islamabad has removed key obstacles to attract bidders, including securing IMF approval to absorb Rs45 billion in negative equity and eliminating the 18% sales tax on aircraft acquisitions. Additionally, the anticipated resumption of European flight routes, closed for years, serves as an added incentive.
A previous attempt to privatize PIA failed due to investor concerns over incomplete ownership, tax liabilities, and financial instability. The earlier offer of a 60% stake failed to attract significant interest, and a weak vetting process left a real estate developer as the sole bidder, offering only Rs10 billion—far below the Rs85 billion asking price. Despite the failed bid, the government paid Rs1.2 billion in advisory fees to Ernst & Young, drawing criticism from former Privatization Minister Abdul Aleem Khan.
This time, Islamabad has enhanced the deal by offering full ownership and a clean balance sheet, increasing its appeal to potential investors. If successful, it could become one of Pakistan’s largest privatization transactions in years.
UK Confirms PIA Remains on Air Safety List
Meanwhile, the UK Department for Transport (DfT) has confirmed that Pakistan International Airlines (PIA) remains on the air safety list, meaning it is still banned from operating commercial flights to, from, and within the United Kingdom.
A spokesperson for the department stated that the UK Civil Aviation Authority (CAA) remains in contact with Pakistani authorities on the matter. “Airlines must undergo a rigorous process to have restrictions lifted,” the spokesperson added. The UK Air Safety List includes airlines banned on safety grounds, preventing them from operating flights to and from the UK.
Last week, reports suggested that the ban on PIA flights to Britain could soon be lifted, following a critical review by the British Air Safety Committee. The restrictions were first imposed in July 2020 by UK and European aviation authorities after a scandal involving fake pilot licenses.
In 2020, then-aviation minister Ghulam Sarwar Khan claimed that some Pakistani pilots were flying with fraudulent licenses, leading to the European Union, the UK, and the United States banning PIA flights. The restrictions have cost the airline an estimated Rs40 billion ($144 million) annually in lost revenue.
In January 2025, after years of suspension, PIA resumed direct flights from Islamabad to Paris, marking its return to European skies. Hoping for similar success in the UK, PIA spokesperson Abdullah Hafeez Khan stated that once cleared, the airline would prioritize London, Manchester, and Birmingham routes.
Despite these developments, PIA clarified that the UK Department for Transport has not issued any formal statement or correspondence regarding lifting the ban. “No decision has been made yet, and relevant Pakistani aviation authorities remain in constant contact with UK officials,” the spokesperson said, urging against speculation.
