In a major relief move for Pakistan’s industrial sector, the government has announced a reduction of Rs4.04 per unit in electricity tariff, a step expected to significantly lower production costs and stimulate industrial activity.

The government has reduced the industrial base electricity tariff from Rs33.58 per unit to Rs29.18 per unit. The decision marks a reduction of four rupees and four paisa per unit, providing direct financial relief to industries across multiple categories.

Officials from the Power Division confirmed that the revised tariff will apply to industrial consumers nationwide.

Overall tariff also likely to fall

According to Power Division officials, the total electricity tariff for industries, including taxes and other charges, is likely to decrease from around Rs46 per unit to approximately Rs42 per unit. There is also a possibility of further reduction in the overall tariff structure.

At present, Pakistan’s industrial electricity tariff is the highest in the region, exceeding 13 cents per unit, compared to lower rates in Bangladesh, Nepal, and Sri Lanka.

Wheeling charges cut

In another supportive move, the government has also announced a reduction of Rs9 in wheeling charges. Industry representatives have described this cut as a positive development that will further reduce the cost of doing business.

The combined reduction in base tariff and wheeling charges is expected to pave the way for long-term cost efficiency in the industrial sector.

Savings worth crores

Following the prime minister’s announcement, industries of various categories are set to receive direct relief. Medium and large industries are expected to save crores of rupees annually due to the revised electricity rates.

Business leaders believe the reduction will improve Pakistan’s ability to compete with regional economies such as Bangladesh and Vietnam, where industrial power tariffs are significantly lower.

Experts say the reduction in electricity tariffs for export-oriented industries will accelerate industrial activity. Lower energy costs are expected to increase production levels and create new employment opportunities.

The industrial sector has welcomed the move, stating that reduced business costs will strengthen export competitiveness and overall economic growth.

Textile industry raises further demands

The textile industry has demanded the abolition of the 18% GST imposed on locally produced cotton. Industry representatives have also called for the immediate implementation of the new electricity tariff from February 1.

The business community has echoed this demand, urging the government to enforce the reduced tariff without delay to maximize its economic impact.