Power Minister Awais Leghari told the National Assembly in a written reply that excess electricity generation remains the main reason for high power tariffs.
Expressing his thoughts, Leghari said that lower grid usage increases the per-unit cost, adding that a new electricity package is under preparation for industrial and agricultural users.
It will include a neutral subsidy, and certain users will receive a concessional rate of 8 to 9 cents per unit on additional consumption.
Leghari maintained that the electricity tariffs have decreased, with the benefit to be reflected in the fiscal year 2026. A target has also been set to reduce additional capacity charges by 8 to 9 per cent in the coming period.
He said that in the fiscal year 2025, industrial subsidies dropped from Rs225 billion to Rs74 billion. Losses incurred by distribution companies fell from Rs591 billion to Rs397 billion during the same year, he said.
The minister said ongoing reforms would result in clear improvements in both electricity tariffs and the grid system.
