ISLAMABAD—In a major move aimed at bolstering economic activity, the National Electric Power Regulatory Authority (NEPRA) has approved a subsidized tariff for incremental electricity consumption by the industrial and agricultural sectors, acting on a request from the Federal Government. This decision is designed to incentivize higher production and consumption across these key economic drivers.
According to the Power Division, industries and the agricultural sector consuming additional electricity beyond their baseline will now be charged a reduced rate of PKR 22.98 per unit for the incremental consumption. This represents a significant discount from their regular tariffs, which stood at PKR 34 and PKR 38 per unit, respectively.
Federal Energy Minister Owais Leghari hailed the decision, describing the industrial package as a significant step towards “promoting industrial and agricultural activities” and generating “additional employment opportunities.” He noted that the three-year duration of the package will enable the industrial sector to undertake better long-term planning. The concession will also benefit emerging sectors, including data centers, crypto mining operations, and greenfield industries.
Leghari emphasized that industry and agriculture are the backbone of the economy, stating that the government is fulfilling its public promises and that this measure will lead to substantial economic improvement.
The Power Division welcomed NEPRA’s decision, confirming that procedures for issuing the implementation notification have begun. The new scheme is expected to decrease the average cost of electricity for consumers. For instance, consuming an additional 100 units in the agricultural sector will reduce the average electricity cost by approximately PKR 7 per unit, while an extra 1,000 units in the industrial sector will lead to a reduction of around PKR 5 per unit in the average cost.
