Govt Plans Rs10.5/Unit Power Cut for 2026-28

Islamabad, July 05, 2025, 03:11 PM PKT — The federal government has unveiled a bold initiative to foreign donors, including the World Bank and Asian Development Bank, proposing a Rs10.5 per unit electricity price cut for industrial and agricultural sectors under the Industrial Support Package (2026-28), aiming to revive demand plummeted 20% due to unaffordable costs, as reported by The Express Tribune. This economic lifeline sets industrial rates at Rs22.98 per unit and agricultural rates at Rs22.98, offering a Rs7.77 benefit per unit, applicable only to incremental consumption beyond December 2023–November 2024, designed as cost-neutral to tackle circular debt while preserving financial balance.

Presented to international donors, the package drew skepticism over sustainability without comprehensive power sector reforms, with diplomats questioning post-expiry demand stability amid grid reliability issues and reform delays. Energy demand challenges persist, with industrial consumption down 20% over two years, and experts stress grid capacity and service quality as critical priorities for long-term success. The government bets on immediate relief to boost industrial and agricultural growth, but stakeholders demand a balanced approach blending pricing reforms with structural fixes.

Web context highlights ongoing power sector woes (e.g., high transmission losses), while posts found on X reflect mixed views—some welcome relief, others doubt sustainability. Critically, the narrative of “economic revival” may mask short-term fixes—web data points to reform gaps, and X sentiment suggests distrust in lasting impact, hinting at potential fragility.