Massive Reduction In Electricity Tariffs Announced For Domestic, Industrial, Agricultural Consumers: Awais Leghari

ISLAMABAD, (UrduPoint / Pakistan Point News - 15th May, 2025) Federal Minister for Energy, Sardar Awais Ahmad Khan Leghari, has announced significant reductions in electricity tariffs across various consumer categories over the past year.

Speaking during the National Assembly’s question hour on Thursday, the minister said that domestic consumers using less than 200 units per month have seen a 57 percent reduction in electricity prices, while industrial and agricultural sectors have benefited from 31 percent and 20 percent cuts, respectively.

Responding to a question from MNA Tahira Aurangzeb, Leghari revealed that out of nearly 39 million electricity consumers nationwide, around 18 million fall under the category of using under 200 units monthly. He highlighted that the reduction in rates for these users is aimed at supporting lower and middle-income households.

For the industrial sector, the 31 percent tariff cut has led to a sharp increase in electricity demand, particularly in Faisalabad, where industrial consumption has surged by 35 percent. Leghari credited this to improved government policy.

Regarding the agricultural sector, the minister explained that the government previously provided direct subsidies but has now moved to a model of fuel cost adjustment approved by the Prime Minister. This shift has allowed for a 20 percent decrease in electricity rates for farmers.

He added that agreements worth Rs 3.5 trillion have been signed with Independent Power Producers (IPPs), and the benefits are being passed on to consumers through various adjustments, including petroleum development levy reductions.

The minister expressed optimism that if the current trajectory continues, Pakistan could soon offer the most competitively priced electricity in the region. He also stated that the government is ready to provide electricity at rates between Rs 21 to 22 per unit over the next three years, with no subsidies required, and discussions with development partners are ongoing.

In response to supplementary questions, Leghari noted that tariff reductions also apply to middle-class households using between 200 and 400 units per month—with 20 percent and 14 percent cuts respectively. He clarified that load-shedding in the K-Electric region is limited to feeders with high losses.

Addressing another query, the minister pointed out that past agricultural subsidies ranged from Rs 50 to 60 billion, but now the fuel price adjustment mechanism has been extended to the agriculture sector, reducing electricity costs for farmers without direct subsidies.

He emphasized that the government does not practice provincial discrimination, noting multiple meetings with the Khyber Pakhtunkhwa Chief Minister last year to improve recovery and install meters in high-loss areas. However, Leghari lamented that no substantial action followed from the provincial government, resulting in continued losses of around Rs 4 billion.

Leghari reaffirmed that load-shedding is conducted in accordance with NEPRA regulations and that efforts are being made to address voltage issues and minimize public inconvenience, especially in areas with limited administrative control.