On the back of significant economic achievements, such as reducing inflation to below single digits and negotiating a new agreement with the International Monetary Fund (IMF), the government has now secured an even greater success. By prematurely terminating costly contracts with independent power producers (IPPs) and opening the door for renegotiation based on more standardised and rationalised rates, the government has eased one of the biggest burdens on the Pakistani exchequer. These favourable contracts, awarded to IPPs a decade ago to attract foreign investors, have become a major strain on the economy, especially in light of global inflation. This burden was being passed onto the public, who were struggling with soaring electricity bills and had increasingly taken to protesting in response. The Prime Minister was right to hail this as a victory and personally announce the achievement.

Prime Minister Shahbaz Sharif has made it his mission to reduce the financial strain on the common citizen from high electricity costs, whether through small projects in remote areas, promoting solar power, or renegotiating IPP contracts. With this latest success, it appears he has been effective in his efforts, and this is reflected in concrete figures.

The Prime Minister stated that this move will save the country at least $216 million annually, and if the contracts are properly renegotiated, the government could reduce the electricity tariff by up to Rs. 10 per unit. This successful renegotiation adds another feather to the Prime Minister’s cap in terms of economic reform, away from the sensationalist court cases and protests that dominate public discourse. The Pakistan Muslim League-Nawaz (PML-N) has quietly been focusing on economic reforms, and with each passing month, it delivers notable improvements over the legacy it inherited.