ISLAMABAD, MAR 8 /DNA/ – The All Pakistan Business Forum (APBF) has expressed serious concerns over the recent electricity tariff adjustments notified by the National Electric Power Regulatory Authority (NEPRA), warning that the Rs23 billion additional burden on consumers could strain businesses and households alike.
APBF President Syed Maaz Mahmood and Chairman Ibrahim Qureshi said the latest fuel cost and quarterly tariff adjustments will directly impact operational costs for industries and increase the cost of living for ordinary citizens.
He said that NEPRA allowed an additional Rs1.63 per unit under the fuel cost adjustment (FCA) for March and about 35 paise per unit under other charges over the next three months. This means electricity consumers will bear nearly Rs1.98 per unit in higher tariffs this month alone. According to NEPRA, the FCA component for March amounts to approximately Rs14 billion, while the quarterly tariff adjustment of Rs8.7 billion will be recovered gradually over three months.
Maaz Mahmood highlighted that the rising electricity costs will significantly affect industrial production. “Industries are already managing high input costs due to inflation and global energy price volatility. Adding Rs2 per unit to electricity tariffs increases operational expenses and reduces profit margins, particularly for small and medium enterprises,” he said.
Chairman Ibrahim Qureshi emphasized that businesses relying on continuous power supply, including manufacturing, textiles, and export-oriented sectors, will face additional financial pressure. He noted that while NEPRA cited additional electricity drawls from the national grid as a mitigating factor, the marginal generation plants used to meet the incremental load have nonetheless pushed up FCA adjustments. “The incremental supply may prevent a bigger tariff spike, but the net effect on consumers and industries remains significant,” Ibrahim Qureshi said.
The APBF president called for more transparent communication from the regulator and urged authorities to consider phased adjustments or targeted relief for industrial users and low-income households.
Maaz Mahmood added, “A sudden jump in electricity costs can slow down production, discourage investment, and affect employment in energy-intensive sectors. Policymakers need to balance cost recovery with economic sustainability.”
Both APBF leaders also highlighted the long-term importance of improving energy efficiency, expanding renewable generation, and optimizing tariff structures to shield the economy from frequent cost shocks. They stressed that businesses remain committed to supporting economic growth but require predictable and stable electricity pricing to plan production and maintain competitiveness.
With electricity costs rising across sectors, APBF warned that failure to address these challenges could push operational expenses higher, affecting exports, household budgets, and overall economic stability in the coming months.
