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Pakistan wraps ToU tariff talks, keeps regime optional for industry

April 01, 2026
A representational image of a grid station where an electrician is busy working in Hyderabad. — APP/File
A representational image of a grid station where an electrician is busy working in Hyderabad. — APP/File

ISLAMABAD: Ministry of Energy (Power Division) has concluded nationwide consultations on a proposed multi-slab Time-of-Use (ToU) industrial tariff, assuring businesses the new pricing regime will remain optional as it seeks to balance industrial competitiveness with power sector sustainability.

The three consultative sessions brought together key industry stakeholders, including the Federation of Pakistan Chambers of Commerce and Industry, All Pakistan Textile Mills Association, Lahore Chamber of Commerce & Industry, Korangi Association of Trade and Industry, Sindh Industrial Trading Estate and Pakistan Association of Large Steel Producers, alongside major industrial consumers and media representatives.

Officials said the initiative marks a shift towards evidence-based and participatory policymaking, with industry leaders broadly welcoming the government’s outreach. Participants offered detailed input on the tariff’s opt-in structure, duration, and flexibility, as well as concerns over fixed charges linked to Maximum Demand Indicator (MDI) and the impact of quarterly and fuel cost adjustments.

Steel sector representatives, in particular, flagged risks tied to high MDIs and low-capacity utilization, urging sector-specific adjustments to avoid undue cost burdens. The Power Division said all feedback would be carefully reviewed before finalising the framework, reiterating that the ToU regime will not be mandatory and will allow industries to opt in based on operational needs. Officials also underscored the need for advanced metering infrastructure to support ToU pricing, calling it critical for efficient energy use.

The consultations signal growing coordination between government and industry aimed at improving consumption patterns, boosting competitiveness and ensuring long-term stability in the power sector.