KSE-100 Surges as PM Shehbaz Cuts Electricity Prices
The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) initially showed strength, climbing 792.80 points, or 0.67 percent, to settle at 119,730.91 points in the first half of the trading session, compared with the previous closing of 118,938.11 points.
The surge was fuelled by investor optimism following a major reduction in electricity prices by the Prime Minister (PM) Shehbaz Sharif as well as staff-level agreement with the IMF.
The KSE-100 also crossed 120,796.67, marked at its intraday high, and touched an intraday low level of 119,085.73 points.
PM Shehbaz announces reduction in electricity prices
Earlier, Prime Minister (PM) Shehbaz Sharif on Thursday announced a reduction in electricity prices in a ‘major’ relief to the public.
Addressing an event organized for the announcement, PM Shehbaz revealed that the government has decided to decrease the electricity tariff by Rs 7.41 per unit for domestic consumers.
The prime minister also announced a reduction of 7.59 rupees per unit for industries.
PM Shehbaz expressed confidence that the reduction in electricity prices will trigger economic activities in the country. He described the reduction as a gift to the nation on the occasion of Eid.
“I have come to share good news regarding Pakistan’s economic growth on the occasion of Eid. The promise made by Nawaz Sharif in the party manifesto has been fulfilled today,” he said.
“The benefit of the global decrease in oil prices will be passed on to the people in the form of reduced electricity prices,” said the prime minister. “Fortunately, the IMF has agreed to provide relief”.
He said that successful negotiations with Independent Power Producers (IPPs) will result in a massive saving of Rs3,696 billion. To address the issue of circular debt, which currently stands at Rs2,393 billion, PM Shehbaz said arrangements have been made.
The prime minister also expressed his determination to tackle power theft, which amounts to Rs600 billion annually. He stressed the importance of privatizing all power distribution companies or transferring them to provincial authorities.
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