ISLAMABAD: The government has signaled relief for industrial electricity consumers and the salaried class, even as state-owned power distribution companies seek a massive 400% hike in security deposits from consumers.
Speaking at a Pakistan Business Council event, Finance Minister Muhammad Aurangzeb acknowledged the excessive tax burden on salaried individuals and pledged to simplify the tax filing system. However, he remained uncertain about changes to tax slabs in the upcoming budget due to the ongoing IMF program. He noted improvements in Pakistan’s economy, including declining inflation, lower interest rates, and foreign exchange reserves reaching $13 billion.
Meanwhile, Power Minister Awais Ahmad Khan Leghari announced plans to offer industrial consumers electricity at marginal costs, with even cheaper rates for Greenfield projects such as data centers and IT businesses. He revealed that industrial tariffs had already dropped by Rs11 per unit since June 2024, and the competitive electricity market would be gradually implemented from April.
Leghari also indicated a shift in tariff structures for nuclear, hydropower, and Chinese-backed power plants to curb circular debt and lower electricity prices. He reiterated the government’s goal of privatizing eight out of 10 power distribution companies within two to three years.
Amid these developments, power companies have submitted proposals to Nepra seeking a 400% increase in security deposits for consumers in lower slabs, arguing that the hike is necessary due to rising electricity rates. If approved, the deposit per kilowatt could surge from Rs1,220 to Rs5,179, significantly raising costs for new connections and reconnections.
Story by Khaleeq Kiani
