Pakistan notifies PKR 4 per unit cut in electricity tariff for industries

The Pakistan government has reduced electricity prices for industrial consumers by PKR 4.04 per unit to spur economic growth and lower the rate for commercial users which is one of the highest in the region.

An official notification issued on Tuesday said the benefit will apply retrospectively from February 1.

The reduction lowers the base tariff for industries from PKR 33.58 to PKR 29.54 per unit. Following the decrease, the industrial electricity tariff stands at approximately 11.5 cents per unit.

Earlier, Prime Minister Shehbaz Sharif said his government will provide incentives to industries, calling the tariff cut “a major relief measure for the industrial sector”.

Sharif said the reduction would help ease the financial burden on manufacturers, reduce the cost of production and improve competitiveness in domestic and international markets.

The government also eliminated a PKR 101 billion cross-subsidy burden that had been imposed on industries, a step officials say will further support industrial growth.

The Power Division had approached National Electric Power Regulatory Authority (NEPRA) after industrial stakeholders raised concerns over high electricity costs.

Following a hearing on February 11, NEPRA sent its decision to cut the tariff to the government, which subsequently issued the notification to implement the revised tariff.

Officials said the reduction in electricity rates is expected to lower industrial input costs and production expenses, potentially stimulating output and exports at a time when Pakistan is seeking to strengthen economic stability.

The tariff cut is part of broader efforts by the government to provide relief to key economic sectors and encourage industrial expansion.