Industrial Power Tariff Reduction Pakistan: Govt Slashes Rates by Rs4
The federal government has officially notified a significant industrial power tariff reduction in Pakistan, bringing much-needed relief to the business community. Effective from February 2026, the National Electric Power Regulatory Authority (NEPRA) has slashed electricity rates by up to Rs4.58 per unit. This move aims to lower production costs and boost the competitiveness of export-oriented sectors.
Major Relief for All Industrial Categories
This latest adjustment targets various tiers of industry, from small workshops to massive manufacturing plants. Small industrial consumers, classified under the B1 category, will see their energy charges drop to Rs26.23 per unit. Previously, these businesses were paying over Rs30. Similarly, medium-sized industries in the B2 category have received a cut, with rates moving from Rs30.73 down to Rs26.16 per unit.
The most substantial benefit for these sectors comes from the sharp decline in off-peak rates. For instance, B2 off-peak charges have plummeted from Rs27.41 to Rs22.83. This change is vital for factories that operate continuous shifts, as it significantly lowers the “cost of doing business” during night hours.
Impact on High-Tension and Large Users
Heavy industries have not been left behind in this industrial power tariff reduction in Pakistan. Consumers in the B3 and B4 categories—typically those using 11kV to 132kV lines—will now pay between Rs26.43 and Rs27 per unit. While peak-hour rates saw a modest decline of Re1, the off-peak reductions of nearly Rs4.50 per unit are expected to provide the real fiscal cushion.
However, it is important to note that a new fixed monthly charge has been introduced for B1 consumers at Rs1,250. For larger categories, the existing fixed charges remain at Rs1,250 per kilowatt.
Domestic Consumers and Fixed Charges
While the focus remains on the industrial sector, the government also updated the Schedule of Tariff (SOT) for households. Lifeline consumers using under 100 units will see their rates remain stable. However, “protected” domestic consumers will now face new fixed monthly charges ranging from Rs200 to Rs300.
For non-protected households, the news is a mix of relief and extra costs. Those using between 301 and 500 units will see a slight per-unit decrease of roughly Rs1.50, but higher consumption slabs will only see marginal cuts of less than 50 paisas.
This strategic industrial power tariff reduction in Pakistan reflects the government’s attempt to restart the economic engine. By prioritizing the manufacturing sector, authorities hope to see a surge in exports and job creation through the end of 2026.
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