ISLAMABAD: The Power Division on Wednesday released its one-year performance report for 2025, highlighting deep electricity tariff reductions, elimination of long-term liabilities, and structural reforms aimed at modernizing the sector. Officials described the measures as a decisive reset of Pakistan’s power industry under the leadership of Prime Minister Shehbaz Sharif, with support from Chief of Defence Staff Field Marshal Syed Asim Munir and policy direction from Energy Minister Awais Ahmed Khan Leghari.
The report stated that domestic electricity tariffs were reduced by Rs8.35 per unit, while industrial users received relief of Rs16.68 per unit. Flood-affected areas were granted full bill waivers and payment concessions, and farmers’ tube wells as well as households consuming up to 300 units benefited from negative fuel cost adjustments.
A three-year “Roshan Economy” package was launched to provide industrial and agricultural users additional electricity at Rs22.98 per unit, supporting production and exports. Negotiations with independent power producers (IPPs) reportedly eliminated a projected Rs3.4 trillion liability, while closure of inefficient plants removed a recurring Rs7 billion salary burden from electricity users. Future projects totalling 9,500 MW were cancelled to prevent a potential Rs1 per unit increase in tariffs.
The division also reported a record Rs780 billion reduction in circular debt without resorting to new loans, improved collection efficiency, initiated privatization of three power distribution companies, and removed the Rs35 PTV fee from electricity bills. Additional reforms included a 44% reduction in electric vehicle charging tariffs, launch of the “Apna Meter, Apni Reading” app, a 118 helpline for consumer support, and competitive bidding that lowered smart meter prices by 40%, generating estimated annual savings of over Rs100 billion.
The report further highlighted strategic initiatives including power planning for Gwadar, merit-based recruitment of young professionals, and a 100 MW green energy project in Gilgit-Baltistan. Pakistan now generates 55% of its electricity from clean sources, with a target of 90% by 2034, positioning the country as a regional leader in green energy.
Story by Israr Khan
