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Pakistan’s industrial sector has fiercely opposed the government’s new incremental power consumption package, warning that the move could lead to widespread factory closures and hamper exports. The proposal, currently under review by the National Electric Power Regulatory Authority (NEPRA), sets the power tariff at Rs. 22.98 per unit for additional electricity use by industrial and agricultural consumers.
At a public hearing chaired by NEPRA Chairman Waseem Mukhtar, representatives from APTMA, FPCCI, and KCCI criticized the plan as “discriminatory” and “poorly designed.” They argued that the policy was drafted without industry consultation and failed to reflect economic realities such as high production costs, weak demand, and growing solar adoption.
“None of the people drafting this policy understand the financial realities of factories,” said Rehan Jawed of the FPCCI. APTMA’s Syed Absar Ali warned that most textile units contributing nearly 60% of exports would not benefit under the proposed terms.
The Power Division, however, defended the plan, calling it “subsidy-neutral and vital for grid stability.” Officials claimed it could add Rs. 1.16 trillion to GDP and ease the Rs. 1.7 trillion burden of idle power plant payments. They noted that over 1,300 MW of demand had shifted off-grid as industries and farmers turned to solar energy, threatening grid balance.
NEPRA officials expressed concern over the lack of consultation and sought clearer mechanisms for tariff review if marginal costs rise. The authority is expected to revisit the proposal before granting approval, amid strong calls for a simpler, regionally competitive tariff framework that supports industrial recovery.
