Islamabad, May 15, 2025 – Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, announced substantial reductions in electricity tariffs across residential, industrial, and agricultural sectors during the National Assembly’s question hour on Thursday.
The minister emphasized that the structure of electricity tariffs has been realigned to provide relief to millions of consumers, particularly those from lower and middle-income households.
Highlighting the government’s recent achievements, Leghari revealed that domestic electricity consumers using less than 200 units per month have seen a significant 57 percent reduction in their electricity tariffs. This category represents nearly 18 million out of the total 39 million electricity consumers in Pakistan. Leghari stressed that the reduction is designed to ease the financial burden on vulnerable segments of society.
The cuts in electricity tariffs have not been limited to domestic users. Industrial consumers have also benefited, with a 31 percent reduction in electricity tariff, leading to increased productivity and a 35 percent rise in industrial electricity demand in key zones like Faisalabad. Leghari attributed this growth to improved policy measures aimed at stimulating economic activity.
In the agricultural sector, electricity tariff relief has been implemented through a fuel cost adjustment model instead of direct subsidies. This change has resulted in a 20 percent drop in electricity costs for farmers, enhancing affordability and transparency. According to the minister, the previous subsidy regime—costing the government up to Rs 60 billion—has been replaced with a more sustainable pricing mechanism.
Leghari also noted that middle-class households using between 200 and 400 units per month have seen 20 percent and 14 percent reductions in electricity tariff, respectively. These adjustments are part of the government’s broader strategy to rationalize energy pricing while encouraging efficiency and minimizing losses.
The energy minister further stated that agreements worth Rs 3.5 trillion have been signed with Independent Power Producers (IPPs), enabling the government to pass on benefits to consumers through reduced electricity tariffs and lower petroleum development levies. Looking ahead, Leghari expressed confidence that Pakistan could soon provide the most competitively priced electricity in the region, targeting a tariff of Rs 21–22 per unit over the next three years—without subsidies.
Efforts continue to address load-shedding, improve meter installation in high-loss areas, and ensure fair electricity access nationwide.