ISLAMABAD, FEB 17: In a major relief for the industrial sector, the government has reduced electricity prices by Rs4.4 per unit for industrial consumers. A formal notification has been issued, confirming that the revised rates will take effect from February 1.
The move is aimed at addressing industry concerns and improving competitiveness amid economic challenges.
According to the notification, the basic electricity tariff for industrial units has been reduced from Rs33.58 per unit to Rs29.54 per unit. Following the reduction, the effective tariff for industries now stands at 11.5 cents per unit.
The decision is expected to provide substantial cost relief to manufacturers and exporters.
Cross-subsidy burden removed
With this adjustment, the cross-subsidy burden of Rs101 billion previously imposed on industries has been brought down to zero.
The elimination of this financial burden is being viewed as a significant step toward creating a more balanced and competitive energy pricing structure.
NEPRA approval process
The reduction follows a formal application submitted by the Power Division to the National Electric Power Regulatory Authority (NEPRA) in response to concerns raised by the industrial sector.
After conducting a hearing, NEPRA sent its decision to the government on February 11, paving the way for the implementation of the revised tariff.
The price cut marks a key development for Pakistan’s industrial landscape, offering relief to businesses while aiming to stimulate production and economic activity.
