ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday announced a landmark “Roshan Economy Power Package” offering discounted electricity at Rs22.98 per unit for industries and farmers — but only for additional power consumption beyond last year’s usage — in a major push to boost production, exports and jobs without burdening domestic consumers.
Under the three-year plan, effective from November 2025 to October 2028, the reduced tariff will apply to extra units consumed above last year’s level, while existing rates will continue for the same level of consumption. The initiative effectively lowers the cost of surplus power to Rs22.98 per unit, compared to the current Rs34 for industries and Rs38 for the agriculture sector.
The new relief plan offers progressive tariff discounts for higher electricity usage in both industrial and agricultural sectors.
“The package will not impose any cost on households or other sectors,” the prime minister said while meeting with industrialists, agricultural experts and business leaders in Islamabad. He said the programme would strengthen the backbone of Pakistan’s economy—its industry and agriculture—by making them regionally competitive and encouraging investment.
The prime minister praised Energy Minister Sardar Awais Ahmad Leghari and his team for crafting the relief plan, calling their efforts “commendable.” He recalled that under last winter’s incentive programme, industrial and agricultural users consumed 410 gigawatt-hours of additional electricity, which helped power factories, increase exports and create jobs.
“The journey from economic crisis to stability has certainly been challenging, but it became possible through the hard work of our economic team and your cooperation,” the prime minister said. “As our industrial and agricultural sectors progress, Pakistan will be able to free itself from the burden of debt.
“By the grace of Allah and through sound policies, the country’s economic indicators have improved. But we must all continue to work even harder,” he added, expressing firm confidence that with collective effort and the economic team’s tireless dedication, Pakistan will soon achieve the goal of economic self-reliance.
Shehbaz said the difficult journey from economic crisis to stability was becoming fruitful due to “better policies and the tireless work of the economic team.” He expressed confidence that with continued cooperation from the business community, Pakistan would soon achieve economic self-reliance.
Later, Leghari, in a video message, said the government decided to channel 7,000 megawatts of surplus electricity to productive sectors rather than letting it go to waste. “The cost of additional units for both industry and agriculture has been reduced to Rs22.98 per unit,” he said. “For farmers, the average cost of electricity will drop by Rs7 per unit, while for industries it will fall by about Rs5 per unit.” He said the decision would help reduce the overall average cost of electricity purchases and stimulate economic activity across the country.
According to official details, for industries currently paying Rs34.9 per unit (excluding taxes), the average tariff will drop to Rs32.5 per unit with 25 percent higher consumption than last year, Rs30.9 with 50 percent more, and Rs28.9 if consumption doubles. Officials said that even greater usage would lead to further tariff reductions.
Similarly, agricultural consumers now paying Rs32.2 per unit will see the rate fall to Rs30.3 with 25 percent additional consumption, Rs29.1 with 50 percent more, and Rs27.6 per unit if they double their power use compared to last year.
Meanwhile, the National Electric Power Regulatory Authority (Nepra) has imposed a fine of Rs25 million on the Lahore Electric Supply Company (Lesco) for failing to improve its transmission and distribution (T&D) losses and recovery performance during fiscal year 2023–24, compared to the previous year.
In an order issued Thursday, Nepra said Lesco failed to provide a satisfactory response to a show-cause notice served in March 2025 under the Nepra (Fine) Regulations, 2021. The regulator noted that despite being granted over three months, the company did not submit a reply—effectively admitting to the allegations of regulatory non-compliance.
Nepra observed that Lesco officials were evading various law enforcement agencies due to ongoing inquiries related to wrong and excessive billing, which hampered their ability to manage operational performance. The authority said this further validated the allegations of improper metering and billing practices. The order also noted that Lesco had admitted to overbilling consumers in violation of Nepra’s Consumer Service Manual, later adjusting or refunding the excess amounts as directed by the regulator.
Nepra directed Lesco to deposit the Rs25 million fine within 15 days, warning that failure to comply would result in recovery under Section 41 of the Nepra Act as arrears of land revenue, along with additional legal action for non-compliance.
Meanwhile, in an extensive meeting with representatives from diverse industrial and business sectors to review proposals aimed at improving Pakistan’s economy and expanding investment opportunities, PM Shehbaz directed the federal institutions to refine existing strategies in light of constructive recommendations from experts and business leaders to ensure inclusive and sustainable economic growth, a PMO news release said.
Shehbaz emphasised that the government’s foremost priority was to facilitate industrial and business communities, reduce barriers for new enterprises, and promote investment-friendly reforms. “The federal government equally encourages both domestic and foreign investors, and resolving all possible obstacles to new business ventures remains among our top priorities,” he affirmed.
Highlighting the government’s economic agenda, he stated that expanding exports and establishing new industries could swiftly translate Pakistan’s positive economic indicators into long-term, sustainable growth. He reiterated that public-private cooperation is essential to achieve durable progress and transform macroeconomic stability into tangible national prosperity.
He noted that making Pakistani products and enterprises competitive not only regionally but globally was central to the government’s economic vision, adding that efforts were under way to attract foreign direct investment (FDI), particularly in manufacturing and production sectors.
He assured the participants that federal ministries and relevant institutions were working tirelessly to convert recent economic stability into widespread welfare and development outcomes. “The government is taking effective steps to bring in international investment alongside strengthening domestic industries to ensure Pakistan’s economic advancement,” he said.
The meeting also deliberated on reducing industrial production costs, enhancing product competitiveness against regional markets, and exploring new avenues for international trade and investment.
Industry representatives, while appreciating the government’s reform measures and progress toward macroeconomic stabilisation, observed that continued policy consistency and facilitation could make Pakistan a more attractive destination for investors.
The session was attended by Federal Minister for Finance Muhammad Aurangzeb, Minister for Energy Sardar Owais Ahmad Khan Leghari, Minister for Economic Affairs Ahad Khan Cheema, Minister for Railways Hanif Abbasi, Minister for Information and Broadcasting Attaullah Tarar, Minister for Commerce Jam Kamal, Minister for National Food Security Rana Tanveer Hussain, Minister for Information Technology Shaza Fatima Khawaja, Minister of State for Finance Bilal Azhar Kayani and senior officials from relevant ministries.
Ziad Bashir’s presentation
During the meeting at the PM House, textile industrialist Ziad Bashir presented assessment of Pakistan’s export sector, describing it as being on the brink of collapse due to, what he termed, “policy-induced impossibility.”
Bashir’s presentation outlined 17 key policy failures that have rendered exporting from Pakistan “economically irrational,” emphasizing that the export community is not seeking handouts but rather a level playing field to compete globally.
The most severe challenge highlighted was the explosive rise in energy costs. Gas tariffs for export industries have surged over 300 percent in recent years, destroying Pakistan’s cost competitiveness before products even reach the factory floor.
“While Pakistan penalises its exporters with skyrocketing energy costs, regional competitors like Bangladesh, India and Vietnam maintain stable, regionally competitive energy pricing specifically designed to support their export sectors,” Bashir noted in his presentation.
Adding to the crisis, gas supply to captive power plants has been cut off, forcing export units to shift to expensive and unreliable grid power. Ironically, this occurs while excess gas availability leads to capacity payment losses for idle power plants. Bashir termed this “punishment for productivity, rewards for waste.”
His presentation also sharply criticised the imposition of carbon levies on fuel inputs for export industries, calling it a “policy anomaly” that creates a double burden. Pakistani exporters already face stringent international carbon compliance requirements like the EU’s Carbon Border Adjustment Mechanism (CBAM), making the additional domestic levy particularly damaging to competitiveness.
In what Bashir described as “economically absurd” policy, documented exporters face a 2 percent turnover tax plus 0.25 percent export development surcharge, totalling 2.25 percent, while purely domestic operators pay just 1.25 percent. “This taxation inversion literally rewards staying local and punishes going global,” the presentation stated.
Sales tax refunds and receivables remain delayed or blocked indefinitely, creating acute liquidity crises. “Exporters are owed their own money yet forced to operate without it,” Bashir noted, saying that viable businesses had become struggling operations even when export orders exist.
The withdrawal of the Export Financing Scheme (EFS) has further crippled the sector, making imported raw materials for re-export uncompetitive or unavailable, breaking, what Bashir called, “the backbone of value-added exports.”
Pakistan’s ports, despite their strategic location, operate as “mere feeders rather than dynamic trade hubs,” resulting in 7-10 extra days in shipping time and $200-$300 additional costs per container. The presentation estimated over $2-3 billion in annual losses from transshipment cargo that should be handled by Pakistani ports.
Perhaps most tellingly, Bashir pointed out that foreign direct investment in Pakistan overwhelmingly targets the domestic market, i.e. telecom, banking and retail, with export-oriented FDI remaining “a tiny fraction” of total inflows.
“If exporting from Pakistan were truly profitable, global capital would already be here. It isn’t because our export ecosystem isn’t yet worth betting on,” the presentation stated, contrasting Pakistan’s situation with Vietnam, Bangladesh and Mexico, which successfully attract billions into export zones.
The presentation highlighted Pakistan’s heavily skewed trade relationships, with massive deficits against China ($12.5 billion), Indonesia ($2.8 billion), and Japan ($1.3 billion), while surpluses with the EU and USA cannot offset the overall imbalance that leaves Pakistan dependent on remittances to balance its current account.
Bashir’s primary recommendation was the adoption of uniform energy tariffs for all industries across Pakistan, eliminating preferential rates and cross-subsidisation schemes that force export industries to subsidise lifeline consumer segments while operating on “razor-thin global margins.”
Other key reforms proposed included exempting exporters from the 10 percent Super Tax to incentivise reinvestment, eliminating the carbon levy on export fuel, rationalising taxation to not penalise documented exporters and unblocking wheeling access to cheaper, cleaner energy.
