ISLAMABAD: The Power Division has released its 2025 annual performance report, highlighting what it described as “historic reforms, improved financial discipline, significant consumer relief, and major strides towards sustainable development” in Pakistan’s energy sector. According to the report, a series of policy measures and strategic decisions have substantially reduced costs for consumers, enhanced sector efficiency, and advanced the country’s transition toward environmentally sustainable electricity generation.
The report emphasized that transparent negotiations with Independent Power Producers (IPPs) eliminated a cumulative financial burden of Rs3,400 billion on both consumers and the national exchequer. As a result, electricity tariffs for domestic consumers were reduced by Rs8.35 per unit, while industrial users benefited from reductions of up to Rs16.68 per unit. Closure of inefficient and obsolete power plants further cut Rs7 billion in costs, while a special relief package of Rs22.98 per unit was introduced for industrial and agricultural consumers, supporting productive sectors and economic growth.
Financial discipline was reinforced through the cancellation of unnecessary power projects totaling 9,500 megawatts, providing an additional Rs1 per unit relief, and a reduction in circular debt by Rs780 billion without incurring new loans. The report also noted the abolition of the Rs35 PTV fee from electricity bills, addressing long-standing public grievances.
The government has also initiated the privatisation process of three power distribution companies (DISCOs) to improve service delivery and operational efficiency. In a push toward sustainability, tariffs for electric vehicle charging stations were reduced by 44 percent, promoting cleaner and modern transport. Special relief measures, including bill waivers and payment concessions, were extended to areas affected by recent floods.
Consumer empowerment and transparency were strengthened through the launch of the mobile app ‘Apna Meter, Apni Reading,’ allowing consumers to submit meter readings directly, and the introduction of the 118 helpline to ensure equitable treatment for all. Competitive bidding for smart meters led to a 40 percent reduction in prices, with the improved smart metering system projected to save over Rs100 billion annually for consumers.
The report highlighted Pakistan’s growing share of renewable energy, noting that 55 percent of electricity generation now comes from environmentally friendly sources, positioning the country as a key regional player in green energy.
Reaffirming its commitment, the Power Division stated that it will continue providing electricity to domestic and industrial consumers in line with international prices and standards. It expressed confidence that the momentum of reforms, transparency initiatives, and consumer relief measures would continue into 2026, supporting sustainable growth and public welfare.
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