Islamabad, January 15, 2026 – The Power Division on Wednesday reported a significant reduction in the electricity cross-subsidy burden on industrial consumers, highlighting government efforts to lower electricity costs and improve competitiveness.
According to the Power Division, the industrial cross-subsidy burden has fallen from Rs 225 billion (Rs 8.9 per unit) in March 2024 to Rs 102 billion (Rs 4.02 per unit), marking a reduction of Rs 123 billion since the current government took office. Industrial electricity tariffs, including taxes, also decreased from Rs 62.99 per unit in March 2024 to Rs 46.31 per unit by December 2025, while the national average tariff dropped from Rs 53.04 to Rs 42.27.
The statement highlighted measures contributing to the reduction, including the termination of inefficient power plants, renegotiation of Independent Power Producer (IPP) contracts, and the introduction of a surplus power package, offering industrial and agricultural consumers electricity at PKR 22.98 per unit for three years. Additionally, the government launched a Circular Debt Settlement Plan aimed at clearing outstanding electricity debt over 5–6 years, which will eliminate the Rs 3.23 per unit debt surcharge and provide further tariff relief.
The Power Division also noted the growing impact of off-grid solar consumption, which doubled protected consumers from 11 million in 2021 to 22 million, increasing the cross-subsidy burden on industrial and commercial consumers. While tariffs reflect broader socio-economic policies, the government is exploring subsidy reforms, debt refinancing, and other measures to further reduce industrial electricity costs.