The federal government has officially ended the collection of electricity duty through monthly power bills starting July 2025. Energy Minister Awais Leghari announced the decision in a formal letter sent to all provincial chief ministers. He stated that the move is part of the government’s plan to reduce the financial pressure on electricity consumers across the country.
Leghari explained that electricity bills have become too complicated due to the presence of multiple taxes, duties, and surcharges. Many consumers do not understand what they are being charged for, which often leads to confusion and frustration. By removing the provincial electricity duty, the government hopes to make the bills more transparent and manageable for the public.
In addition, the minister highlighted several ongoing reforms aimed at reducing overall power costs. These include reviewing contracts with Independent Power Producers (IPPs), which have long-term agreements with the government, and lowering the return on equity for government-owned power plants. These steps are expected to lower the production cost of electricity in the future.
Leghari emphasized that the ultimate goal is to reflect only the actual electricity usage in consumer bills. He urged provincial governments to suggest alternative methods for collecting the electricity duty directly, instead of including it in federal bills. This will ensure that consumers pay only for what they use, without extra hidden costs.
The decision marks a significant shift in how electricity-related charges are handled in Pakistan. It is expected to bring relief to millions of households and businesses already struggling with high utility costs. The government has pledged to continue taking steps that promote affordability, fairness, and transparency in the energy sector.