ISLAMABAD: Prime Minister Shehbaz Sharif is expected to unveil a major electricity tariff relief package this week for industrial and agricultural consumers, aimed at stimulating economic growth and improving energy sector efficiency.
Under the proposed plan, electricity rates for incremental consumption will be reduced to Rs22–23.50 per unit for a fixed three-year period — from November 1, 2025, to October 31, 2028. Currently, industrial users pay Rs34 per unit, while agricultural consumers are charged Rs38 per unit.
The Power Division, acting on the prime minister’s directives, designed the package to encourage greater use of grid electricity by offering substantial cost incentives. The move is intended to enhance system efficiency, lower per-unit generation costs, and reduce the burden of capacity payments, estimated at Rs1.766 trillion for the ongoing fiscal year.
Officials said industrial units that double their consumption could enjoy a Rs7–8 per unit reduction, while farmers increasing usage by 100 percent may benefit from Rs4–6 per unit savings.
The initiative also seeks to optimize Pakistan’s installed generation capacity by spreading fixed costs over a larger consumption base, thereby easing average tariffs for all users. Additionally, the three-year pricing stability is expected to boost investor confidence and support long-term planning in the industrial sector, which continues to face headwinds from sluggish large-scale manufacturing (LSM) and declining exports.
Story by Khalid Mustafa
