The federal government has announced a reduction of approximately 4.04 rupees per unit in electricity costs for industrial consumers following Prime Minister Shehbaz Sharif’s approval to remove cross-subsidy charges from power bills. Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari stated that this move eliminates a long-standing burden on industrial electricity tariffs. The cross-subsidy component, which was 8.90 rupees per unit at the start of the government’s tenure, has now been reduced to zero.
With the removal of cross-subsidy charges, industries will see an average decrease of 4.04 rupees per unit in wheeling charges, lowering overall electricity costs for manufacturers. Wheeling charges, which cover the use of the grid for power transfer, will now reflect the reduced cost, although the exact impact may vary depending on the category and consumption profile of each industrial consumer.
The Power Division highlighted that the reduction will lower energy input costs for both export-oriented and domestic industries, improving competitiveness and supporting industrial growth. With the relief in place, electricity for industrial use is expected to be available at approximately 11.5 cents per unit, providing meaningful financial support to Pakistan’s manufacturing and export sectors.
