Prime Minister Shehbaz Sharif announced massive cuts in electricity prices for both domestic and commercial consumers on Thursday.

Shehbaz made the announcement in a special ceremony attended by members of the federal cabinet as well as businessmen.

The PM announced that electricity rates for domestic consumers will be cut by Rs7.41 per unit lowering the price to Rs34.37 per unit.

Similarly, the price of electricity for commercial users, the price of electricity will be lowered by Rs7.59.

“Unless we significantly cut electricity rates, Pakistan’s industry, agriculture, trade or exports cannot grow,” Shehbaz said in his speech, calling the electricity rate cut an Eid gift for the nation. He added that the rate cut had been decided after extensive talks with the International Monetary Fund.

He also said that the government had successfully negotiated with independent power producers to save Rs3,669 billion. He added that plans were also being made to deal with circular debt.

Shehbaz said that his government had saved the country from the brink of default and inflation had now been brought down from 38% to single digits. He also added that the policy rate has been lowered to 12%.

He said that the lower electricity prices would make life easier for the ordinary man while making Pakistan’s exports more competitive.

The PM’s announcement comes at a time when power generation in Pakistan has fallen to five-year low of 6,945 GWh.