The federal government has announced a reduction of around Rs. 4.04 per unit in electricity costs for industrial consumers after Prime Minister Shehbaz Sharif approved the removal of cross-subsidy charges from power bills.
Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari said that under the prime minister’s guidance, the government has decided to eliminate a long-standing burden on industrial electricity tariffs. He said the cross-subsidy component, which stood at Rs. 8.90 per unit at the start of the government’s tenure, has now been reduced to zero.
The minister said that with the removal of this burden, industries will see an average reduction of Rs. 4.04 per unit in wheeling charges under the cross-subsidy head, significantly easing electricity costs for manufacturers.
Officials explained that wheeling charges currently include a cross-subsidy component, and once it is removed, the overall cost of using the grid for power transfer will decline accordingly. The actual impact may vary depending on the category and consumption profile of each industrial consumer.
The Power Division said the move will lower energy input costs for export-oriented and domestic industries, helping improve competitiveness and encourage industrial activity.
With the announced relief, electricity for industries is expected to become available at approximately 11.5 cents per unit, providing meaningful support to Pakistan’s manufacturing and export sectors.