The government has proposed a new Industrial Support Package (2026–28) to international donors, offering up to Rs. 10.5 per unit reduction in electricity prices on additional consumption by industrial and agricultural users to revive demand, which has fallen 20 percent in two years.
The government is seeking diplomatic support for the package, which aims to reduce the average tariff of Rs. 33.5 per unit to Rs. 22.98 per unit for incremental industrial use. Agricultural users will receive a Rs. 7.77 per unit discount based on a current rate of Rs. 30.75, reported Express Tribune.
The proposed discount applies only to electricity consumed above the baseline set between December 2023 and November 2024. Where historical data is unavailable, the government will use sanctioned load or the higher of recent monthly consumption.
The Rs. 3.23 per unit debt servicing surcharge and quarterly tariff adjustment will not apply to this incremental use. This could increase costs for residential users, who may bear a larger share of the Rs. 1.2 trillion debt repayment burden.
Donors questioned the plan’s sustainability and its reliance on price cuts without parallel sector reforms. They noted ongoing delays in the competitive market rollout, wheeling charge resolution, and privatization of DISCOs.
Concerns were raised about grid reliability, excess capacity claims, and whether demand gains would be sustained after the package ends.
Donors advised a balanced approach combining reliable supply, structural reforms, and competitive pricing, warning that short-term price signals alone would not revive industrial grid demand.
If lowering the per unit price result increase in salary of labour then fine otherwise its nothing but incentive for elite.
Imf already rejected this . How is govt trying to openly support their pocket masters instead of poor people.
I second your point. Although my comment hasn’t been approved by the moderators yet for some reason, you seem to be lucky.