Electricity Prices in Pakistan

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Electricity Prices in Pakistan

1. Introduction

Electricity is a fundamental necessity for households, businesses, and industries. In Pakistan, electricity prices have been a matter of public concern due to frequent fluctuations, rising tariffs, and increasing reliance on imported fuels.

2. Current Situation

As of 2024–2025, electricity prices in Pakistan have seen a sharp increase due to various internal and external factors. The average electricity tariff stands around PKR 35 to PKR 60 per unit, depending on the consumption slab, time of use, and category of the consumer (residential, commercial, industrial)


3. Factors Behind Rising Electricity Prices

  • Fuel Imports: Pakistan relies heavily on imported fossil fuels such as LNG and coal to generate electricity. Any fluctuation in international prices directly impacts local electricity tariffs.

  • Circular Debt: The power sector suffers from a chronic issue of circular debt, which crosses PKR 2.6 trillion, leading to financial instability and price hikes.

  • Transmission & Distribution Losses: Technical and non-technical losses (including theft) result in a significant wastage of generated electricity.

  • Currency Depreciation: The devaluation of the Pakistani rupee increases the cost of imported fuel and machinery.

  • Lack of Reforms: Delayed reforms and inefficiency in power sector management have led to increased costs and reduced reliability.

4. Impact on Society

The increase in electricity prices severely affects:

  • Households, especially low-income families who struggle to afford basic utilities.

  • Industries, which face higher production costs, impacting exports and employment.

  • Businesses, especially small and medium enterprises (SMEs), which find it difficult to remain profitable.

5. Government Measures & Solutions

  • Subsidies for low-income users through targeted support.

  • Investments in renewable energy such as solar and wind to reduce dependency on imports.

  • Privatization of DISCOs (Distribution Companies) to improve efficiency.

  • Smart metering and digitization to reduce theft and improve billing accuracy.

6. Conclusion

Electricity prices in Pakistan are a reflection of deep-rooted challenges in the energy sector. Long-term planning, transparent governance, and adoption of sustainable energy sources are essential to stabilize prices and ensure energy security for all citizens.


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