Mr Riaz Thaheem (Economist): It is great news for nation and our economy that government has reduced the prices of electricity significantly. Industrialists, chambers of commerce and other segments had complaints about higher power tariffs. Therefore, a task force to negotiate with IPPs was formed which held fruitful talks with IPPs and now government has reduced the power tariffs. Chambers and business communities have hailed government’s decision as it will reduce the cost of production and make it competitive with the international market. The government and Prime Minister has also sent a good news to agricultural sector. The government will also remove the circular debt in next five years and it will further promote the industrial sector. At present industrialists demand further reduction in power tariff which is possible to end line losses of sector. In this regard, further talks with IPPs can be fruitful to cut power tariff. Moreover, government may focus on curtailing the line losses which at present mount to Rs 600 billion. The government will also give a good news to consumers of solar power in future. The government has made decisions to privatize loss making DISCOs so that experts may improve power transmission system by controlling the line losses.

Dr Mirza Ikhtiar Baig (MNA/Economist): The government has taken a bold decision by cutting the power tariff as it will benefit the whole nation. The government has taken drastic and historical step and it will revive economic activities in the country especially in manufacturing sector. Cost of production had become unaffordable due to higher power rates but now government’s decision will lower the cost of production of manufacturing sector. It will be beneficial for industrial sector immensely by making our industrial products competitive in the international market. Presently, the state owned entities are incurring loss of billions of rupees therefore the government wants to privatize these loss making SOEs. But privatization process takes a long time for its completion because it is a complex procedure.

Dr Ali Salman (Economist): Prime Minister Shehbaz Sharif has taken great step by reducing the power tariff. It will provide huge benefit to both the industrial and domestic consumers. Moreover, this decision will also bring easiness to daily lives of the people because it will also lower the prices of daily commodities, transportation and other utilities.  Prime Minister has rightly pointed out the line losses and other factors which are hurting the performance of power sector. Therefore, it is need of the hour that the government must move forward towards the privatization of loss making DISCOs.