In a significant development for the nation's power sector, the Power Division of Pakistan has projected substantial relief for electricity consumers in the upcoming fiscal year. The division has informed a parliamentary committee that consumers are expected to receive a benefit of Rs8.35 per unit in the fiscal year 2025. This announcement was made during a crucial meeting of the National Assembly Standing Committee on Power, chaired by MNA Chaudhry Salik Hussain.
Projected Tariff Reduction and Government Strategy
The Power Division presented a detailed forecast to the committee, outlining the financial dynamics of the power sector. According to their submission, the projected national average tariff for the fiscal year 2025 is estimated at Rs35.50 per unit. However, the government has planned to provide a subsidy, which would bring the actual charge to consumers down to approximately Rs27.15 per unit. This strategic intervention creates the stated relief of Rs8.35 per unit for the end-users.
Officials emphasized that this projection is based on current estimates and the government's commitment to shielding the public from the full brunt of power generation costs. The relief is part of a broader financial plan involving subsidies and cross-subsidies within the energy sector.
Addressing Past Tariff Hikes and Future Projections
The committee's meeting also served as a platform to address recent concerns. Members questioned the Power Division about the substantial tariff increase of Rs7.12 per unit that was implemented in July 2024. In response, division officials provided a breakdown, clarifying that the increase was a necessary adjustment approved by the National Electric Power Regulatory Authority (NEPRA) to cover various capacity charges and other sectoral costs.
Looking ahead, the Power Division's forecast for the fiscal year 2026 indicates a potential further reduction. The national average tariff is projected to decrease to around Rs32.50 per unit, suggesting a continuing trend of managed costs for consumers, contingent on stable fuel prices and sectoral reforms.
Financial Commitments and Consumer Impact
The projected relief for 2025 comes with a significant fiscal implication for the national treasury. To make the Rs8.35 per unit benefit a reality, the government is expected to allocate approximately Rs1.27 trillion in subsidies. This enormous financial commitment underscores the political and economic priority being placed on providing affordable electricity to households and businesses across Pakistan.
The announcement has been welcomed as a positive signal for inflation-weary citizens, offering a glimpse of potential stability in one of the most critical household expenditures. However, analysts caution that these are projections, and the final consumer tariff will depend on several variables, including international fuel prices, exchange rates, and the overall performance of the power distribution companies.
The Power Division's presentation aims to demonstrate a structured, long-term approach to tariff management, moving away from abrupt hikes and towards more predictable and subsidized pricing for the end consumer.
