The federal government has announced significant electricity cost relief for industrial consumers, reducing power tariffs by around Rs. 4.04 per unit after Prime Minister Shehbaz Sharif approved the complete removal of cross-subsidy charges from industrial power bills.

Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari said the decision follows the prime minister’s directive to ease long-standing cost pressures on industries. He noted that the cross-subsidy component in electricity tariffs—Rs. 8.90 per unit at the start of the government’s tenure—has now been brought down to zero.

According to the minister, the removal of this charge will directly reduce wheeling charges for industrial users, resulting in an average relief of Rs. 4.04 per unit. Wheeling charges include the cost of using the power grid to transfer electricity, and eliminating the cross-subsidy element will lower overall grid usage costs for manufacturers.

Power Division officials clarified that the actual impact may vary depending on the industry category and consumption patterns, but the overall relief is expected to be substantial across the sector.

The government believes this move will reduce energy input costs, particularly for export-oriented and domestic industries, improving competitiveness and encouraging higher industrial output.

Following the relief, electricity for industries is expected to be available at approximately 11.5 cents per unit, offering meaningful support to Pakistan’s manufacturing base and export-driven sectors.