Shehbaz Sharif Delivers Big Electricity Breaks for Industry in Pakistan

Prime Minister Shehbaz Sharif announced on Friday that electricity tariffs for the industrial sector have been cut by Rs4.04 per unit and wheeling charges lowered by Rs9 per unit, while the Export Financing Scheme rate for exporters was reduced from 7.5% to 4.5%. Speaking at a ceremony in Islamabad honoring Pakistan’s top businessmen and exporters, the Prime Minister said, “If it were up to me, I would have reduced them by another Rs10, but my hands are tied.”

The event was attended by Deputy Prime Minister Mohammad Ishaq Dar, federal ministers, entrepreneurs, and other business leaders. Awards were presented to top exporters and business figures for their performance in 2024 and 2025.

He emphasized that the measures aim to support Pakistan’s export sector and industrial growth, with the reduced Export Financing Scheme rate providing a substantial boost to businesses.

The announcement came as news emerged that electricity consumers could face an additional 48 paisa per unit under the Fuel Cost Adjustment (FCA) for December 2025.

At NEPRA hearing yesterday, industrial representatives criticized the proposed increase, stating that electricity prices are already high and further adjustments would hurt competitiveness. One representative said, “Instead of reducing power prices, a hidden increase is being imposed. Industry cannot survive under the current tariff structure.”

Power sector officials explained that the FCA may rise in the short term but quarterly adjustments are expected to fall, offering some relief in coming months. They added that hydel power generation declines in winter, increasing reliance on costly fuels, but improves in summer, helping reduce the FCA.