ISLAMABAD (April-06-2025) Dr. Shahid Rasheed Butt, a respected business leader and former president of the Islamabad Chamber of Commerce and Industry (ICCI), on Sunday praised the recent reduction in power tariffs as a commendable step forward.
However, he firmly argued that a further reduction is essential, as current tariffs for the struggling industrial sector continue to exceed those of the United States, the European Union, China, and various other nations.
Shahid Rasheed Butt said in a statement issued here today that this disparity highlights the urgent need for more competitive pricing to foster economic growth and support consumers.
He noted that Pakistan’s domestic consumers are still paying a very high electricity price compared to India and Bangladesh.
Moreover, our industrial sector pays almost double the electricity prices compared to the United States, China, and India and even higher than the European Union, adversely affecting its export competitiveness.
According to the International Energy Agency, the average 2024 electricity rates in the United States and India were 6.3 cents each per kilowatt-hour, 7.7 cents in China, 4.7 cents in Norway, and 11.5 cents in the European Union.
In comparison, he informed that average electricity prices for energy-intensive industries in Pakistan hovered around 13.5 cents per unit in 2024, indicating difficulties Pakistani industries face at home and in exporting products abroad.
Shahid Rasheed Butt said that the recent tariff cut is insufficient as it translates into a reduction of almost 2.56 cents per unit, which is not enough the trigger industrialization.
Pakistan’s economy is facing many problems due to expensive electricity, and it is promoting de-industrialization as high energy costs are pushing industries elsewhere.
He added that many industrialists have closed down their units and started trading or property businesses, which do not contribute to the economy as much as the industrial sector does.
Shahid Rasheed Butt said that affordable power is vital for economic growth as high electricity prices continue to undermine the competitiveness of energy-intensive industries.
Global electricity consumption was expected to increase fastest from 2025 to 2027, fuelled by growing industrial production, rising air conditioning use, accelerating electrification, and expanding data centres worldwide.
Global electricity demand rose 4.3 percent in 2024 and is forecasted to grow by close to 4 percent through 2027.
Most of the additional electricity demand through 2027 will come from emerging economies, which are expected to make up 85 percent of the growth. More than half of global electricity demand growth in 2024 came from China, which grew by 7 percent, similar to the previous year.
Electricity demand in China is forecast to increase by 6 percent annually until 2027, while India’s demand is estimated to grow at an average of 6.3 percent annually over the next three years.
However, he regretted that millions in Pakistan and 600 million in sub-Saharan Africa still lack access to reliable electricity
