Government to Cut Power Tariffs by Rs.10 for Industry and Farms

Government Cut Power Tariffs

Government plans a three-year relief package that could cut power tariffs by more than Rs.10 per unit for industrial and agricultural users from November 1, 2025 to October 31, 2028, with Prime Minister Shehbaz Sharif expected to announce the plan on Thursday.

What the relief package including cut in power tariffs includes

Under the proposal, discounted rates will apply to additional electricity consumption, encouraging factories and farms to use more power efficiently and raise output.

Moreover, the measure is designed to reduce energy bills for businesses and growers who have struggled with high costs.

Officials say the program will be nationwide and will focus on making tariffs predictable over the full three year window.

In addition, the government will target higher utilisation of existing generation capacity so that savings translate into lower unit costs.

Competitive energy costs across the supply chain

Lower tariffs are meant to ease production costs, improve export pricing and strengthen competitiveness in local and global markets.

As power becomes cheaper, authorities expect higher capacity use, more shifts on factory floors and better margins for producers.

That, in turn, could attract new investment and support job creation specifically for youth in Pakistan.

Moreover, a stable tariff path may lift business confidence in energy intensive sectors such as textiles, engineering goods and agro-processing.

While details on eligibility and billing mechanics will follow the formal announcement, officials frame the package as a step toward sustained economic activity and broader growth.

Average electricity price in Pakistan (Rs/kWh)

Yearaverage price
202017.49
202118.29
202223.03
202324.82
202429.78
202534.47

Source: NEPRA