Pakistan regulator approves 3-year electricity subsidy program for industrial, agriculture sectors

Pakistan’s power regulator — the National Electric Power Regulatory Authority (NEPRA) — on Tuesday approved a government plan to cut electricity rates for industrial and agricultural consumers in a bid to reduce business costs and spur economic growth.

The three-year relief package, which was first announced in October by Prime Minister Shehbaz Sharif, offers additional electricity to industries and the agriculture sector at subsidized rates.

Under the revised tariff structure, the price of additional electricity units for agricultural users will drop from PKR 38 to PKR 22.98 per unit, while the rate for industrial users will fall from PKR 34 to PKR 22.98 per unit, according to the Power Division.

“This major relief measure will lower the average cost of purchased electricity for consumers in both sectors,” the Division said. It noted that agricultural users consuming an extra 100 units would see an average reduction of roughly PKR 7 per unit, while industrial users consuming an extra 1,000 units would pay nearly PKR 5 less per unit.

Energy Minister Sardar Awais Ahmed Khan Leghari said the three-year package would allow industries to plan operations “with greater confidence and stability”. He said greenfield industries, including data centers and crypto-mining operations, would also qualify for the discounted rates.

The Power Division stressed that the industrial support package would not affect residential or commercial consumers.

The initiative is expected to boost production, improve competitiveness and generate employment nationwide, the Division said. It added that the cuts were aimed at stimulating economic activity and demonstrated the government’s commitment to making power tariffs more affordable and growth-oriented.

The government expressed confidence that the reduced rates would help revive the economy and provide relief to key productive sectors.