NEPRA Cuts Power Rates for Industries & Agriculture – New Rs22.98 Tariff Explained (2025 Complete Guide)
Pakistan’s economic landscape has been struggling with high electricity costs, reduced production efficiency, and financial pressure on industries and farmers. In a major policy shift, the National Electric Power Regulatory Authority (NEPRA) has approved a concessional tariff of Rs22.98 per unit for additional electricity consumption in both the industrial and agricultural sectors.
This government-backed decision aims to boost production, Revive Agriculture, support industrial growth, and stimulate overall economic activity in Pakistan.
This comprehensive article explains the new tariff, benefits, expected economic impact, sector-wise comparison, government statements, and how industries & farmers will benefit in practical terms.
What Is NEPRA’s New Rs22.98 Concessional Tariff?
Under the new structure, NEPRA has approved a uniform tariff of Rs22.98 per unit for excess electricity consumption beyond previous usage levels.
Previous vs New Electricity Rates
| Sector | Old Rate (per unit) | New Rate (per unit) | Reduction |
|---|---|---|---|
| Agriculture | Rs38 | Rs22.98 | Rs15.02 decrease |
| Industry | Rs34 | Rs22.98 | Rs11.02 decrease |
This means:
- Farmers will save approx. Rs7 per unit on an additional 100 units.
- Industries will save approx. Rs5 per unit on an additional 1,000 units.
This is a massive relief package for Pakistan’s productive sectors.
Why the Government Introduced This Package?
The government says the decision is part of a larger economic recovery program.
Key Government Objectives
- Reduce cost of doing business
- Increase industrial output
- Boost agricultural productivity
- Promote employment opportunities
- Strengthen export competitiveness
- Encourage long-term investment and new greenfield industries
How Will the Agriculture Sector Benefit?
Agriculture is the backbone of Pakistan’s economy. High electricity rates made tube wells, water pumps, and cold storage extremely expensive.
Expected Benefits for Farmers
- Lower cost of irrigation
- Improved crop management
- Reduced financial pressure on small farmers
- Ability to operate tube wells for longer
- Enhanced water availability during critical crop stages
Impact on Crop Production
With cheaper power:
- Wheat, cotton, rice, and sugarcane production costs decrease
- Greenhouse farming becomes more affordable
- Livestock cooling and water systems improve
- Cold storage operations become economically viable
This will help stabilize food prices and improve farmer incomes.
Also read: IMF Approves $1.3 Billion Loan for Pakistan – Complete Details, Waivers, Conditions & New Tax Measures
How Will the Industrial Sector Benefit?
Pakistan’s industrial sector—especially textiles, steel, manufacturing, cement, and SMEs—has struggled due to rising electricity prices.
Expected Impact on Industries
- Lower cost of production
- Higher manufacturing output
- Competitive pricing in export markets
- Expansion in factory operations
- Improved planning under a 3-year stable tariff package
- Jobs creation in urban and rural industrial zones
Energy Minister Owais Leghari said the new tariff will help industries plan long-term expansions, increasing productivity and employment.
Greenfield Industries to Benefit
The Energy Minister confirmed that several modern sectors will also receive support under this package, including:
- Data centers
- Crypto mining operations
- IT and digital processing industries
- New technology-driven plants
- Renewable energy-linked industries
These sectors are expected to attract foreign investors and accelerate digital transformation.
Government’s Vision Behind the Tariff Reduction
The government emphasized that this package is:
- Investment-friendly
- Pro-business
- Pro-farmer
- Industry-boosting
- Economy-revitalizing
The Power Division stated that the decision will promote productive economic activity and create an environment where industries can grow sustainably.
Who Will NOT Benefit From the Package?
The concessional tariff does not apply to:
- Domestic consumers
- Commercial consumers
- Small businesses
- Retail shops
- Individual households
The decision is specifically targeted at productive sectors to uplift the economy.
How Much Will Pakistan’s Economy Gain?
The economic benefits of this tariff cut are significant.
Projected Economic Gains
- Higher industrial output
- Increased agricultural yields
- Lower unit cost of electricity for large consumers
- More export revenue
- Reduced inflationary pressure
- Improved investor confidence
- Expansion of employment opportunities
Economists believe the energy relief package could stimulate economic growth by 1.5% to 2% in the next two years if implemented smoothly.
Implementation Timeline
NEPRA confirmed that:
“The package will be implemented after notification is issued.”
Once the notification is released, all DISCOs (Discos) will revise billing structures for agriculture and industry.
Why This Decision Matters Now
Pakistan is facing:
- High inflation
- Reduced production output
- Heavy import reliance
- Slow agricultural growth
- Weak industrial performance
This tariff cut is designed to counter these challenges by giving industries and farmers affordable electricity to keep operations running efficiently.
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Conclusion
NEPRA’s approval of the Rs22.98 concessional tariff for industrial and agricultural sectors marks a major turning point for Pakistan’s economic revival. It reduces the cost of production, increases competitiveness, and supports farmers at a time when electricity costs were becoming unbearable.
The 3-year package provides stability, encourages investment, and promotes economic activity across the country. If implemented efficiently, this decision may significantly help Pakistan recover industrially and agriculturally in the coming years.
Frequently Asked Questions (FAQs)
1. What is the new electricity tariff announced by NEPRA?
NEPRA has approved a concessional tariff of Rs22.98 per unit for additional electricity consumption by industries and agriculture.
2. Will domestic consumers benefit from this package?
No. The tariff relief is only for industrial and agricultural sectors.
3. How much money will farmers save under the new tariff?
Farmers will save approximately Rs7 per unit on additional usage of 100 units.
4. Why is the government reducing electricity prices for industries?
To boost production, increase exports, and revive the economy by lowering the cost of doing business.
5. When will the new tariff be implemented?
It will be implemented after the official government notification is issued.
