In a move to revive the economy and ease the burden on citizens, the federal government has unveiled sweeping relief measures for electricity consumers in Budget 2025-26.
During his address to the National Assembly, Finance Minister Muhammad Aurangzeb revealed a substantial reduction in electricity tariffs for both industrial and domestic consumers, marking a major shift in the country’s energy policy.
As part of the budgetary relief, electricity costs for the industrial sector have been reduced by 31%, a move aimed at lowering production expenses and enhancing Pakistan’s competitiveness in regional and global markets. The government hopes this significant tariff cut will help industries recover from economic stagnation and create much-needed jobs.
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In an even more striking announcement, Aurangzeb shared that 18 million low-income households will benefit from a 50% reduction in their electricity bills. This relief measure for electricity consumers is expected to bring much-needed financial ease to families struggling with rising inflation and utility costs.
“These reforms are not just about numbers—they’re about people. We want to lift the burden off the working class while helping our industries thrive again,” Aurangzeb stated during the speech.
But the budget wasn’t just about relief—it also introduced major structural reforms in the power sector. The finance minister confirmed that privatization of DISCOs (Distribution Companies) in Faisalabad, Gujranwala, and Islamabad is already halfway complete. These reforms aim to bring efficiency and transparency to the power distribution system, which has long been plagued by losses and mismanagement.
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In another landmark development, the National Transmission and Despatch Company (NTDC) will now be split into three separate entities. This restructuring is expected to improve overall transmission reliability, governance, and service delivery.
Aurangzeb also reaffirmed the government’s commitment to privatizing major public assets, including Pakistan International Airlines (PIA) and the Roosevelt Hotel in New York, within the upcoming fiscal year.
“Business leadership should lie with the private sector, not the government,” said Aurangzeb, emphasizing the need to scale back state involvement in commercial activities. He further disclosed that the cabinet has approved the right-sizing of 10 ministries, merging six divisions into three, as part of the government’s broader austerity and efficiency strategy.
