Category: Latest News

Govt Proposes 10% Power Bill Surcharge to Tackle Mounting Circular Debt

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Your-Bill

ISLAMABAD: In a bid to arrest the spiraling circular debt in the power sector, the federal government has proposed a 10% surcharge on electricity bills, a move tied to its ongoing reform commitments under the IMF programme. Announced by Finance Minister Muhammad Aurangzeb during the budget speech, the surcharge—termed the Debt Servicing Surcharge (DSS)—will be used solely for the repayment of principal debt, not interest or mark-up. The measure is part of a broader strategy to refinance and manage the existing liabilities in the energy sector without further worsening fiscal…

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Rs133.4bn Allocated for Hydropower and Water Projects in FY2025-26

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Dasu-Hydropower1

ISLAMABAD: The federal government has earmarked Rs133.4 billion for hydropower and water sector development under the Public Sector Development Programme (PSDP) 2025-26, aiming to bolster energy generation and improve water infrastructure across the country. Key allocations include Rs20 billion for the Dasu Hydropower Project (Stage-I) and Rs25 billion for the Diamer Basha Dam, with an additional Rs7.787 billion set aside for land acquisition and resettlement. The Mohmand Dam Project (800MW) receives a substantial Rs35.724 billion, reflecting its national priority status. Other major hydropower allocations include Rs3.4 billion for the Tarbela…

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Govt Slashes Subsidies by Rs180bn to Rs1.18tr for FY2025-26; Power Sector Gets Lion’s Share

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power-sector

ISLAMABAD: In a bid to contain fiscal pressures, the federal government has trimmed the total subsidy allocation to Rs1.186 trillion for the fiscal year 2025-26—down by Rs180 billion from the revised estimate of Rs1.378 trillion in the current year. Of the total, Rs1.036 trillion—nearly 87%—is earmarked for the power sector, reflecting continued support to electricity consumers despite fiscal tightening. This includes Rs249 billion for Inter-Disco tariff differential, Rs125 billion for K-Electric’s tariff support, and Rs95 billion for payments to Independent Power Producers (IPPs). Notably, Rs40 billion has been allocated for…

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Pakistan’s Nuclear Power Capacity Reaches 3,530MW Across Two Sites

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Power-Plants

ISLAMABAD: Pakistan’s total nuclear power generation capacity has reached 3,530 megawatts (MW), with six operational nuclear power plants located at two major sites, according to the Economic Survey 2024-25. The Chashma Nuclear Power Generating Station (CNPGS), situated near Mianwali, consists of four units — C-1, C-2, C-3, and C-4 — with a combined capacity of 1,330 MW. The Karachi Nuclear Power Station (KNPGS), located on the Karachi coast, comprises two advanced generation-III units — K-2 and K-3 — with a total capacity of 2,200 MW. Pakistan’s first nuclear power plant,…

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Electricity Consumption Drops 3.6% in Jul–Mar FY25 Amid Rising Tariffs, Solar Shift

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Power

ISLAMABAD: Pakistan’s electricity consumption fell by 3.6% during the first nine months (July–March) of FY2024–25, reaching 80,111 GWh compared to 83,109 GWh in the same period last year, according to the Economic Survey 2024–25. The decline is attributed to subdued industrial activity, elevated power tariffs, energy conservation drives, and increased adoption of off-grid solar solutions. Despite the overall decline, the household sector’s share rose to 49.6% (39,728 GWh), reflecting steady residential demand, while industrial consumption dipped to 21,082 GWh, down from 22,031 GWh. Electricity use in agriculture dropped sharply by…

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