Pakistan approves uniform tariff for special economic zones

The Pakistani government has approved a uniform tariff for Special Economic Zones (SEZs) and industrial estates, a move aimed at boosting industrial development and exports.

The Cabinet Committee on Energy approved the Power Division's summary, allowing SEZs and industrial estates to supply electricity at a single point and manage connections, billing, and other matters independently.

This new system eliminates the intervention of officers from electricity distribution companies in SEZs and industrial estates.

A specific operations and management mechanism is being developed, with implementation expected in the next two to three months by the Power Division and National Electric Power Regulatory Authority.

Under the new system, zone developers will not require additional licenses to supply electricity within the zones. The uniform tariffs are expected to facilitate competition among industries, leading to increased industrial development and exports.

During the meeting of the committee, Prime Minister Shehbaz Sharif emphasized the importance of industrial development for national progress and directed the implementation of the new system in all SEZs.

"By the grace of Allah, we are rapidly moving towards fulfilling our commitment to ease of doing business," he said. "Providing electricity to industries at uniform tariffs will accelerate the pace of national industrial development."

'Positive results'

The prime minister also highlighted the positive results of power sector reforms, noting a reduction in circular debt and improvements in electricity distribution.

From July to November, there was a reduction of PKR 12 billion in circular debt, compared to an increase of PKR 368 billion in the same period the previous year.

The power sector's collections reached 96% in the first five months of the current fiscal year, with a reduction of PKR 53 billion in losses.

The overall price of electricity was reduced by PKR 4.64 in the current fiscal year due to reforms.

"History bears witness that whenever given the opportunity, Allah Almighty has taken the country out of darkness," the prime minister said. "We are taking steps to provide low-cost, environmentally friendly, and continuous electricity to the public."

He commended the Power Division and relevant institutions for their efforts in reducing circular debt and implementing sector reforms.

"We are taking steps to further reduce the cost of electricity for consumers by reviewing IPP agreements," he added.