Pakistan Government Plans to Reduce Industrial Power Tariffs

The government of Pakistan is currently exploring measures to alleviate the financial burden on industries in the upcoming fiscal year 2024-25 budget. One of the key initiatives being considered is the reduction of power tariffs for the industrial sector. This move aims to provide relief to industrial consumers who are currently facing an additional Rs240 billion in electricity bills. The Ministry of Industry and Production is actively working on proposals to lower electricity tariffs, particularly for export-oriented industries. These proposals have also been shared with the International Monetary Fund (IMF) for evaluation.

Upon receiving approval from the Prime Minister, the government is expected to finalize a package that could potentially offer approximately Rs100 billion in benefits to the export sector in the upcoming budget. The federal budget for the fiscal year 2024-25 is scheduled to be presented on June 7, with an estimated total expenditure of Rs16,700 billion. Initial estimates suggest that expenditures on interest and loans are projected to reach Rs9,700 billion, while subsidies are estimated at Rs1,500 billion.

Sources indicate that tax revenue is anticipated to surpass Rs11,000 billion, with direct taxes contributing Rs5,300 billion and federal excise duty contributing Rs680 billion. The proposed reduction in power tariffs for industrial consumers underscores the government's dedication to bolstering the industrial sector and fostering export-oriented industries in Pakistan.

The government's initiative to lower power tariffs for the industrial sector in Pakistan signifies a proactive step towards supporting businesses and enhancing the competitiveness of export-oriented industries. By alleviating the financial strain on industrial consumers, this measure is poised to stimulate economic growth and promote sustainable development in the country.