Nepra approves electricity tariff reduction for industrial and agricultural sectors

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Nepra approves electricity tariff reduction for industrial and agricultural sectors
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KARACHI: The National Electric Power Regulatory Authority (Nepra) has approved the government’s announced reduction in electricity charges for Pakistan’s industrial and agricultural sectors, a move aimed at easing the cost of doing business and promoting economic growth. The decision follows Prime Minister Shehbaz Sharif’s October 2025 announcement, under which industries and the agricultural sector would receive additional electricity at subsidised rates over the next three years.

Under the new tariff structure, the price of additional electricity units for the agriculture sector has been lowered from Rs38 to Rs22.98 per unit. Similarly, the industrial sector’s electricity rate has been reduced from Rs34 to Rs22.98 per unit. According to the Power Division, this major relief measure is expected to significantly lower the average cost of electricity for consumers in both sectors.

For agricultural consumers, using an additional 100 units will result in a reduction of roughly Rs7 per unit in their average electricity cost. Industrial consumers using 1,000 extra units will see a decrease of approximately Rs5 per unit. These adjustments are intended to make electricity costs more manageable for high-consumption sectors, enabling better financial planning and operational stability.

Energy Minister Sardar Awais Ahmed Khan Leghari highlighted that the three-year industrial package will allow businesses to plan future operations with greater confidence and stability. He also noted that greenfield industries, including data centers and crypto-mining operations, would benefit from the revised tariff rates. The Power Division confirmed that this package would not impact residential or commercial consumers, focusing solely on stimulating industrial and agricultural production.

Officials said the revised electricity rates are expected to encourage higher production levels, improve competitiveness, and generate new employment opportunities nationwide. The government emphasized that this initiative reflects a strong commitment to making power tariffs more affordable and growth-oriented, while supporting economic revitalization in key productive sectors.

The policy is also expected to attract investment into industries that are energy-intensive, boost agricultural output, and strengthen Pakistan’s overall economic performance. By reducing the financial burden on these critical sectors, the government aims to foster sustainable growth and enhance the country’s industrial and agricultural competitiveness in regional and global markets. This measure is seen as a significant step toward providing long-term relief to businesses while promoting broader economic development.

Pakistan State Time is a versatile digital news and media website that covers all latest news developments on 24/7 basis.

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