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Pakistan Plans New Time-of-Use Tariffs to Boost Industrial Electricity Efficiency

Irfan Shaikh by Irfan Shaikh
April 2, 2026
Pakistan Plans New Time-of-Use Tariffs to Boost Industrial Electricity Efficiency
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The government of Pakistan is preparing a revised electricity tariff structure aimed at encouraging industrial consumers to maximise daytime operations while reducing load during evening peak hours.

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Federal Minister for Power Sardar Awais Ahmed Leghari discussed the initiative with Bolormaa Amgaabazar during a meeting on Thursday.

The minister highlighted that electricity consumption in Pakistan has been steadily rising, reflecting the effectiveness of ongoing government policies. He emphasized that the new tariffs are intended to make electricity more competitive, particularly for key economic sectors.

Leghari said the Power Division is working on Time of Use (ToU) proposals following an assessment of concessional tariffs, with the aim of incentivizing industries to shift consumption to off-peak hours. “We are looking to leverage Pakistan’s solar potential while providing concessional tariffs to industrial consumers,” he noted.

The minister also stressed that policy measures are being considered to utilise the country’s indigenous resources for electricity generation. He added that the current geopolitical tensions in the Middle East have reinforced the government’s focus on domestic energy solutions.

Leghari acknowledged the World Bank’s ongoing support for Pakistan’s energy sector and reaffirmed the government’s commitment to strengthening collaboration on projects enhancing the country’s electricity infrastructure.

Amgaabazar praised the Power Division’s reform agenda and expressed the World Bank’s commitment to supporting priority areas, including tariff rationalisation, transmission and distribution improvements, and renewable energy integration, according to an official statement.

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Tags: ElectricityTariffsIndustrialConsumptionPakistanPowerRenewableEnergySardarAwaisLeghariTimeOfUseWorldBank
Irfan Shaikh

Irfan Shaikh

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