In a significant move aimed at supporting Pakistan’s industrial sector, the federal government has reduced electricity prices for industrial consumers by Rs 4.04 per unit.
The decision has been formally notified by the Ministry of Energy and will take effect from February 1, 2026.
This reduction is expected to ease cost pressures on manufacturers and boost industrial competitiveness.
What Has Changed in the Industrial Tariff?
According to the official notification:
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Previous base tariff: Rs 33.58 per unit
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New base tariff: Rs 29.54 per unit
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Total reduction: Rs 4.04 per unit
Following this adjustment, the industrial tariff now stands at approximately 11.5 cents per unit.
Cross-Subsidy Burden Removed
The government has also announced that the Rs 101 billion cross-subsidy burden on industries has been reduced to zero.
Previously, industries were contributing to cross-subsidies designed to support other consumer categories. The removal of this burden is expected to:
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Improve industrial cash flow
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Lower production costs
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Enhance export competitiveness
Why Was the Tariff Reduced?
The decision came after concerns raised by the industrial sector.
The Power Division filed a request with the National Electric Power Regulatory Authority (NEPRA).
After conducting a hearing on February 11, NEPRA forwarded its decision to the government, which has now been implemented through an official notification.
What This Means for Pakistan’s Economy
Electricity costs are a major component of industrial expenses, especially in sectors like:
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Textiles
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Steel
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Cement
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Fertilizer
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Manufacturing
Lower tariffs may help:
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Increase production output
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Stabilize product prices
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Improve export margins
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Encourage new industrial investment
For exporters facing international competition, even a small reduction in energy cost can make a meaningful difference.
Will Consumers Benefit?
While this reduction directly benefits industrial consumers, the long-term impact could extend to:
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Lower manufacturing costs
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Stable product pricing
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Potential slowdown in inflation
However, the actual impact will depend on how industries pass on the cost savings to consumers.
