Major Power Tariff Relief: Govt Proposes Rs14 Reduction for Industrial and Agri Sectors

⚡ Government Prepares Three-Year Tariff Relief Package

The federal government is finalizing a three-year power tariff relief package aimed at reducing electricity costs for agricultural and industrial consumers. The move is designed to boost production, lower inflation, and enhance export competitiveness.

According to officials from the Power Division, the proposal includes a tariff reduction of up to Rs14 per unit, bringing rates down to Rs22–23.50 per unit.

Currently, agricultural users pay around Rs38 per unit, while industrial consumers pay about Rs34 per unit.

💡 Tariff Reduction Plan to Take Effect Soon

If approved, the new power tariff package will come into effect immediately after the Prime Minister’s formal announcement, expected within the next few days.

The plan aims to deliver predictable, affordable, and stable energy pricing for key economic sectors that have been struggling with high operational costs.

Officials say that agriculture and industry will especially benefit from discounted tariffs on additional electricity consumption beyond standard usage levels.

“The objective is to increase productivity, ensure food security, and support industrial growth,” an official said. “We want to give businesses long-term stability without sudden tariff shocks.”

🌾 Boosting Production and Economic Stability

The new energy pricing framework is expected to:

• Encourage investment in key sectors

• Reduce inflationary pressure on goods and exports

• Strengthen food and energy security

• Improve industrial output and employment growth

This initiative reflects the government’s broader effort to revive the economy by cutting production costs and improving market competitiveness.

📉 CPPA Seeks Additional Power Tariff Reduction

In a separate move, the Central Power Purchasing Agency (CPPA) has filed a petition with NEPRA (National Electric Power Regulatory Authority) seeking a 37-paisa per unit reduction in power tariffs under the Monthly Fuel Cost Adjustment (FCA) mechanism.

NEPRA is scheduled to hold a hearing on October 29 to review and decide on the proposal.

If approved, this could further lower power bills for consumers across the country.

⚙️ NEPRA Review of K-Electric’s Multi-Year Tariff (MYT)

Meanwhile, the Power Division has praised NEPRA’s review of K-Electric’s Multi-Year Tariff (MYT), calling it a significant reform for Pakistan’s power sector and a positive development for Karachi consumers.

A spokesperson clarified that the MYT review was a regulatory measure, not a financial adjustment aimed at burdening consumers.

“This review ensures K-Electric operates under the same standards as other power distribution companies,” the spokesperson said. “It corrects structural imbalances while maintaining transparency and fairness.”

🧾 No Change in Karachi’s Consumer Subsidies

The Power Division also dismissed claims that the new tariff review removed the Rs7 per unit subsidy for Karachi’s consumers.

Officials confirmed that the national uniform tariff policy remains in place, ensuring that consumer relief stays intact.

“Subsidies for Karachi have not been withdrawn,” the spokesperson added. “A lower subsidy only means reduced government spending, not higher consumer bills.”

⚡ Key Highlights

• Tariffs may drop by up to Rs14 per unit for agriculture and industry

• New rates: Rs22–23.50 per unit

• Relief package to last three years

• Prime Minister’s approval expected soon

• CPPA proposes 37-paisa per unit cut under FCA

• K-Electric MYT review ensures fair regulation

• Subsidies for Karachi consumers remain unchanged

🌍 Economic Impact

The proposed power tariff cuts are expected to stimulate production, reduce inflation, and encourage exports by easing one of the biggest cost burdens faced by producers.

By ensuring affordable electricity, the government aims to revitalize the agriculture and industrial sectors, promote sustainable growth, and strengthen Pakistan’s economic stability over the next three years.