Pakistan is preparing to introduce a new system that will offer cheaper electricity to industrial users starting in March 2026. The plan is part of commitments the government has made under its programme with the International Monetary Fund.
Officials say the move is aimed at encouraging industry and aligning Pakistan’s power market with wider reforms.
Under the new arrangement, a deregulated electricity market will launch with an initial capacity of 200 megawatts. Large industrial consumers with a minimum demand of 1 megawatt will be able to buy power at significantly reduced rates compared to standard tariffs.
The government has confirmed that the usual capacity charges in this segment will be set to zero at the start, cutting a major cost component for big users.
The first cost structure offered in the deregulated market will charge Rs. 6 per unit for one category of industrial users and Rs. 9 per unit for another.
These are expected to be among the lowest industrial electricity charges in the country’s history once they are in effect. Distribution companies will still receive wiring fees for use of the grid.
| Consumer Class | Rate per Unit (Rs) |
|---|---|
| Class B3 | 6 |
| Class B4 | 9 |
The government has also set up independent market operators to manage trading under the new regime. Over the next four years, supply available through this deregulated framework could grow to 800 megawatts, giving more industries access to lower cost electricity.
Analysts say cheaper industrial power can improve Pakistan’s manufacturing competitiveness. However, some concerns are that lowering rates for factories could shift cost burdens elsewhere, including onto household tariffs or public finances.