Power Tariff Reduced, Historic Reforms Implemented: Ministry of Energy Releases Performance Report

Islamabad: The Ministry of Energy (Power Division) has released its one-year performance report for 2025, highlighting significant reductions in electricity prices and the implementation of historic reforms in the power sector.

According to the report, under the leadership of Prime Minister Shehbaz Sharif, with strong support from Chief of Defence Forces Field Marshal Syed Asim Munir, and guidance from Federal Minister for Energy Awais Ahmad Khan Leghari, several long-pending and critical decisions were taken to stabilize the power sector.

The report states that since assuming office, the government has reduced electricity tariffs by Rs8.35 per unit for domestic consumers and Rs16.68 per unit for industrial consumers. Electricity bills were waived in flood-affected areas, with special payment relief provided. Additionally, the benefit of negative monthly fuel adjustment was extended to farmers’ tube wells and consumers using up to 300 units of electricity.

Under the “Roshan Economy Package,” the Ministry announced the provision of additional electricity to industrial and agricultural consumers at Rs22.98 per unit for a period of three years. As a result of tough but successful negotiations with Independent Power Producers (IPPs), a financial burden of Rs3,400 billion was eliminated for consumers and the national exchequer.

The closure of inefficient power plants reduced salary-related expenses by Rs7 billion. Furthermore, in view of surplus electricity generation, future projects worth 9,500 megawatts were cancelled, saving consumers from a potential increase of Re1 per unit in electricity tariffs.

The report also noted improvements in power recovery, initiation of the privatization process of three electricity distribution companies, abolition of the PTV fee, and a record reduction of Rs780 billion in circular debt without taking on additional loans.

The Ministry stated that these reforms have laid the foundation for long-term stability and sustainability in Pakistan’s power sector.