ISLAMABAD, Oct 24: In a significant step to stimulate industrial growth, boost exports, and create jobs, Prime Minister Shehbaz Sharif on Wednesday launched the “Roshan Economy Power Package”, a three-year initiative offering discounted electricity at Rs22.98 per unit to industries and farmers for additional consumption beyond last year’s levels — without shifting any financial burden onto domestic consumers.
The package, which will remain effective from November 2025 to October 2028, provides a progressive tariff structure for both industrial and agricultural users. Existing electricity rates will continue to apply for last year’s usage levels, while any incremental use will be billed at the reduced tariff. Currently, industries pay around Rs34 per unit and the agriculture sector Rs38 per unit.
“This initiative will not burden households or any other sector,” the prime minister said during a meeting with business leaders, industrialists, and agricultural experts in Islamabad. “By making power affordable, we are strengthening the backbone of Pakistan’s economy—its industries and farmers—and making them regionally competitive.”
He praised Energy Minister Sardar Awais Ahmad Khan Leghari and his team for crafting the package, recalling that a similar winter scheme led to the consumption of 410 GWh of additional electricity, powering industries, raising exports, and generating employment.
“The journey from economic crisis to stability has been challenging, but with the hard work of our economic team and your cooperation, we are moving toward self-reliance,” the prime minister said.
Surplus Power Channelled to Productive Sectors
In a video message, Leghari explained that the government decided to channel 7,000 MW of surplus electricity to productive sectors rather than letting it go unused. “The cost of additional units has been reduced to Rs22.98 per unit,” he said. “For farmers, the average cost will fall by Rs7 per unit and for industries by Rs5 per unit.”
Tariff impact for industries:
Rs34.9 → Rs32.5 per unit (25% more usage)
Rs30.9 per unit (50% more usage)
Rs28.9 per unit (double usage)
Tariff impact for agriculture:
Rs32.2 → Rs30.3 per unit (25% more usage)
Rs29.1 per unit (50% more usage)
Rs27.6 per unit (double usage)
Officials said higher usage would further reduce rates, improving competitiveness and encouraging investment.
Nepra Fines Lesco Rs25 Million for Overbilling
Meanwhile, the National Electric Power Regulatory Authority (Nepra) imposed a Rs25 million fine on Lahore Electric Supply Company (Lesco) for failing to improve its transmission and distribution losses and recovery performance during FY2023–24.
Nepra noted that Lesco failed to respond to a March 2025 show-cause notice, effectively admitting to regulatory non-compliance. Investigations also found the company involved in overbilling consumers in violation of Nepra’s Consumer Service Manual. Lesco has been ordered to deposit the fine within 15 days or face recovery proceedings under Section 41 of the Nepra Act.
PM Calls for Investment-Friendly Economic Reforms
During an extensive meeting with representatives from major industrial sectors, Prime Minister Shehbaz Sharif directed federal institutions to refine economic strategies in line with proposals from business leaders and experts to ensure inclusive, sustainable growth.
He reaffirmed the government’s priority to facilitate industrial and business communities, reduce barriers to new enterprises, and encourage both domestic and foreign investment.
“Expanding exports and establishing new industries will convert today’s stability into lasting growth,” the prime minister said, stressing the role of public-private cooperation in achieving macroeconomic transformation.
Textile Sector Warns of ‘Policy-Induced Collapse’
Textile industrialist Ziad Bashir delivered a blunt assessment of Pakistan’s export sector, describing it as being on the “brink of collapse” due to policy-induced impossibilities. His presentation highlighted 17 major policy failures that have made exporting “economically irrational.”
Key issues identified:
Skyrocketing energy costs — gas tariffs for export industries have increased over 300%, eroding cost competitiveness.
Disrupted energy supply — gas cuts to captive power plants force units to rely on expensive grid electricity despite surplus capacity elsewhere.
Carbon levies on fuel, which exporters call a double burden in addition to strict international carbon compliance.
Taxation inversion — documented exporters face a 2.25% turnover tax, while domestic businesses pay 1.25%.
Delayed sales tax refunds — creating liquidity crises despite existing export orders.
Withdrawal of the Export Financing Scheme — making raw material imports uncompetitive.
Inefficient ports — adding 7–10 extra shipping days and $200–$300 per container.
Weak export-oriented FDI — with foreign investment largely focused on domestic sectors instead of manufacturing for global markets.
Bashir warned that energy pricing distortions alone have crippled Pakistan’s export competitiveness compared to countries like Bangladesh, India and Vietnam.
Reforms Proposed by Industry
To reverse the decline, Bashir recommended:
Uniform energy tariffs for all industries, eliminating cross-subsidies.
Exemption of exporters from the 10% Super Tax.
Removal of carbon levies on export fuels.
Rationalisation of taxation to encourage documented exporters.
Opening wheeling access to cheaper, cleaner power.
He also called for urgent infrastructure reforms to make Pakistani ports regional trade hubs, capturing lost transshipment opportunities worth $2–3 billion annually.
High-Level Participation
The meeting was attended by Finance Minister Muhammad Aurangzeb, Energy Minister Sardar Owais Ahmad Khan Leghari, Economic Affairs Minister Ahad Khan Cheema, Railways Minister Hanif Abbasi, Information Minister Attaullah Tarar, Commerce Minister Jam Kamal, National Food Security Minister Rana Tanveer Hussain, IT Minister Shaza Fatima Khawaja, Minister of State for Finance Bilal Azhar Kayani and senior government officials.
Industry leaders expressed cautious optimism, noting that policy consistency and investment facilitation could make Pakistan a more attractive destination for both local and foreign investors.
