The federal government has asked international donors like the World Bank and Asian Development Bank to support a plan that cuts electricity prices. The proposal focuses on industries and agriculture, where power use has dropped by 20% due to rising costs. Officials say the goal is to restart economic activity and improve energy access for these vital sectors.
As part of the Industrial Support Package (2026–28), the government wants to reduce electricity rates by Rs10.5 per unit for additional usage only. Industrial and agricultural consumers will pay Rs22.98 per unit on extra electricity, enjoying a Rs7.77 per unit benefit. However, this discount will not apply to regular usage—only to the amount used beyond the 2023–24 average.
Government officials claim the package is cost-neutral, meaning it won’t increase the circular debt. They say it will help balance energy demand and supply without hurting finances. But foreign donors are cautious. They raised questions about the plan’s long-term stability, especially in the absence of serious reforms in the power sector.
Some diplomats also pointed out that Pakistan’s power grid still faces major issues like frequent outages and low service quality. They worry that once the discount ends, demand may fall again. They advised the government to pair pricing relief with structural reforms, or the gains may be short-lived.
Despite these concerns, the government hopes the package will revive stalled industries and farms, create jobs, and boost production. Experts, however, say that without fixing deeper problems—such as outdated infrastructure, mismanagement, and losses—the relief might only offer temporary support.