Govt to slash power tariffs soon: Leghari

ISLAMABAD/ LONDON/LAHORE: The government will reduce electricity tariffs in the coming days, Power Minister Awais Leghari said Tuesday, as the government seeks to address growing concerns over high energy costs. He asserted that the reduction is imminent and will be evident shortly.

“The reduction will happen at the right time, whether two days earlier or later,” he said, adding that Prime Minister Shehbaz Sharif would soon announce “good news” regarding electricity prices. Speaking to reporters after inaugurating Pakistan’s first-ever 120-kilowatt fast charging station in Islamabad, Leghari dismissed speculation that power prices would remain unchanged.

Leghari, while responding to concerns over fuel pricing, maintained that the government was committed to providing relief. “We stand by our pledge. Our commitments are not like those of the previous government,” he asserted when pressed on whether consumers would be compensated for the fuel price decision. The statement follows mounting public frustration after an anticipated Rs8 per unit tariff cut failed to materialize in the prime minister’s Pakistan Day speech. Earlier, the government had decided to keep fuel prices steady on March 15 despite global oil price drops, increasing the petroleum levy by Rs10 per litre instead. It was pledged that financial savings would be redirected toward lowering power tariffs. At the inauguration event, the minister also announced a reduction in electric vehicle charging rates from Rs71 to Rs39 per unit, making clean energy adoption more affordable. He praised private-public partnerships for driving sustainable energy initiatives, calling the fast-charging station a milestone in Pakistan’s transition toward green mobility. During his address, Leghari emphasized the government’s ongoing commitment to a cleaner, greener future. He highlighted how initiatives like GoGreen Avenue’s fast-charging station are playing a crucial role in transforming Pakistan’s energy and transportation sectors. He reaffirmed that the government is determined to lead Pakistan into a new era of clean energy, and the successful launch of this fast-charging station reflects the nation’s dedication to reducing carbon emissions and promoting electric mobility.

Earlier, the cabinet privatization panel approved a fast-tracked plan to sell a 51 to 100 per cent stake in Pakistan International Airlines Corp. (PIACL), including management control, marking a renewed push to offload the struggling national carrier. The move comes as Islamabad seeks to fulfil commitments under its International Monetary Fund (IMF) programme, pledging to complete the privatization by July.

Deputy Prime Minister Ishaq Dar, chairing the Cabinet Committee on Privatization (CCoP) meeting, reaffirmed the government’s commitment to pushing through the divestment, aiming to unlock PIA’s potential and ease its burden on public finances. The sale is part of a broader economic reform agenda as Pakistan accelerates efforts to curb fiscal deficits and rein in loss-making state-owned enterprises.

The transaction could become one of Pakistan’s largest privatizations in years. Officials expect interest from both local and international investors, particularly strategic buyers with the capability to overhaul PIA’s operations. The government has vowed to push ahead without delays, betting on the privatization drive to help stabilize the economy under its IMF-backed agenda. The government has removed key hurdles to attract bidders, including securing IMF approval to absorb Rs45 billion in negative equity and scrapping the 18 per cent sales tax on aircraft acquisitions. The resumption of European flight routes, closed for years, is also seen as an added incentive.

A previous attempt to sell a majority stake in PIA faltered due to investor reluctance, with most of the six shortlisted parties unwilling to proceed given concerns over incomplete ownership, tax issues, and the airline’s financial instability. The earlier offering of up to 60 per cent of PIA shares failed to draw sufficient interest. This time, Islamabad has sweetened the deal by offering up to full ownership and a clean balance sheet. The last privatization effort collapsed after a weak vetting process left a real estate developer as the sole bidder, offering Rs10 billion—well below the Rs85 billion asking price. Despite the failure, the government paid Rs1.2 billion in advisory fees to Ernst & Young, a move that sparked criticism from former Privatization Minister Abdul Aleem Khan.

In a related development, the UK Department for Transport confirmed that Pakistan International Airlines (PIA) would remain on the air safety list.

In a statement, a spokesperson for the department said that the UK Civil Aviation Authority was in contact with Pakistani authorities regarding the issue. “Airlines must go through a rigorous procedure to have restrictions lifted,” the spokesperson added. The UK Air Safety List is the published list of countries and airlines that are subject to an operating ban on safety grounds and so cannot fly planes to, from or within the UK. All air carriers certified by the authorities with responsibility for regulatory oversight of Pakistan are banned from operating commercial air services to, from, and within the United Kingdom, stated an official UK government website.

Last week, it was reported that the ban on the national carrier on flying to Britain is likely to be lifted soon as the British Air Safety Committee concluded an important meeting on the issue. The ban was enforced in July 2020 by the UK and European aviation authorities following the fake pilot licence scandal. However, Pakistani authorities remained hopeful that the restrictions would be lifted following tomorrow’s review.

In 2020, during Pakistan Tehreek-e-Insaf’s (PTI) government, then-aviation minister Ghulam Sarwar Khan claimed that pilots were operating planes with fake licences. Following this, the debt-ridden PIA was banned from flying to the European Union, the United Kingdom, and the United States. The ban cost the loss-making airline Rs40 billion ($144 million) annually in revenue.

In January 2025, after a years-long hiatus, the PIA operated its first direct flight from Islamabad to Paris, resuming its long-awaited flights to Europe. Eyeing UK operations, PIA spokesperson Abdullah Hafeez Khan said that once cleared by the DfT, London, Manchester, and Birmingham would be the most sought-after destinations.

PIA has 23% of Pakistan’s domestic aviation market, but its 34-plane fleet cannot compete with Middle Eastern carriers, which have 60pc, due to a lack of direct flights, despite having agreements with 87 countries and key landing slots.

Meanwhile, the PIA clarified that “the UK Department for Transport has neither issued a formal statement nor sent any official correspondence regarding the permission for the Pakistani airlines, the airline’s spokesperson said. He said the UK department has not yet made any decision, and all relevant Pakistani aviation authorities remain in constant contact with UK officials while diligently carrying out their responsibilities. The spokesperson advised against speculations and unnecessary assumptions regarding the issue.