The federal government has announced sweeping relief measures and reforms in the power sector as part of Budget 2025-26, including significant reductions in electricity tariffs for both industrial units and low-income households.
During his budget speech in the National Assembly, the finance minister revealed that electricity for the industrial sector will be made 31% cheaper, aiming to reduce production costs and revive industrial competitiveness across the country.
Additionally, the minister announced a major relief package for households, stating that 18 million domestic consumers will receive a 50% reduction in electricity rates.
Alongside the relief measures, the government is also moving forward with structural reforms in the power sector. The minister said that privatization efforts for the distribution companies (DISCOs) of Faisalabad, Gujranwala, and Islamabad are 50% complete, with key groundwork already laid for their transition into the private sector.
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In another major development, the National Transmission and Despatch Company (NTDC) has been reorganized and will now be divided into three separate entities. The restructuring is aimed at improving efficiency, governance, and reliability in the national power transmission system.
Finance Minister Muhammad Aurangzeb also said the government's target was to complete the privatisation of the Pakistan International Airlines (PIA) and the Roosevelt Hotel in the budget for the forthcoming fiscal year.
In his budget speech, the finance czar said: "Policies and regulatory reforms will be advanced for the privatisation of key assets like Discos and Gencos. Government structural reforms are essential to reduce the burden on taxpayers."
"In business matters, the leadership of the country should be provided by the private sector, not the government," said Aurangzeb.
Aurangzeb said: "The cabinet has approved the right-sizing of 10 ministries and six divisions have been merged to form 3."
