Pakistan cuts industrial power subsidy burden by Rs123bn

The Power Division has announced that the industrial cross-subsidy burden has been reduced from Rs225 billion (Rs8.9 per unit) in March 2024, when the current government took charge, to Rs102 billion (Rs4.02 per unit) now, which represents a substantial reduction of Rs123 billion. The industrial tariff, including tax, dropped from Rs62.99 per unit in March 2024 to Rs46.31 per unit by December 2025, while the national average tariff decreased from Rs53.04 to Rs42.27 per unit, the division said in a statement issued on Wednesday. To reduce electricity tariffs, it mentioned, the government had terminated operations of inefficient power plants and renegotiated contracts with the independent power producers (IPPs). "These actions have resulted in tariff reductions and further negotiations with the remaining power producers are in progress."