Soaring energy costs stall growth at 0.29%

LAHORE: The National Electric Power Regulatory Authority (NEPRA) has disclosed that high electricity costs were one of the contributing factors to the decline of the economic growth rate to a mere 0.29% in the financial year 2022-23. According to NEPRA’s State of the Industry Report 2023, the high cost of electricity in Pakistan has emerged as a critical challenge affecting all segments of society. The report states, “Besides domestic consumers, the high price of electricity has had a major impact on the commercial, industrial, agriculture, and services sectors.” NEPRA revealed that the increasing cost of fuel along with the rupee devaluation and many other factors are the reasons behind the higher cost of electricity in the country. “Pakistan heavily relies on imported energy resources such as coal, oil, and gas. The devaluation of the rupee leads to higher import costs, directly influencing electricity pricing and resulting in increased tariffs for consumers,” states the report.