Pakistan’s industrial community has strongly opposed any increase in the base tariffs of electricity distribution companies (Discos), stating that high power tariffs are severely damaging industrial operations and directly hitting the country’s exports.
These remarks surfaced during a public hearing conducted by NEPRA on the temporary tariff rebasing of three Discos — IESCO, FESCO, and LESCO. The rebasing covered six months, from July to December 2026, shifting the annual rebasing from the financial year to the calendar year, as per the revised schedule. NEPRA had earlier determined the annual tariff adjustment/indexation for FY 2025–26 on June 23, 2025.
The Power Division, following the federal cabinet’s approval, later notified a change in the tariff rebasing schedule, under which rebasing would now take effect from January 1 each year. On October 16, 2025, the Power Division directed Discos to approach NEPRA for the determination of consumer tariffs.
During the hearing, the Discos requested changes in their net distribution margins to accommodate increases in salaries, post-retirement benefits, repair costs, and transportation expenses for the next fiscal year. IESCO’s approved O&M cost for FY 2025–26 was Rs 32.958 billion, while it projected O&M requirements of Rs 20.108 billion for the July–December 2026 period. FESCO and LESCO also sought increases in their distribution margins.
Industrial representatives took a firm stance, saying the proposed tariff increases were unaffordable and would further hurt Pakistan’s exports. They proposed that NEPRA summon officials from the Power Division and instruct them to bring power tariffs down to increase electricity consumption and prevent further price hikes. They argued that tariff increases for a temporary six-month period should not be allowed, as industries were already suffering and exports were continuously declining. They added that the rising cost of production due to increased dollar parity was also hurting exporters.
The business community further noted that although the government had arranged RLNG vessels as an alternative fuel source, electricity prices had still risen by 20% over the past six months — despite using the most expensive fuel.
NEPRA, while evaluating a proposal, decided to introduce a third-party mechanism for testing faulty meters in order to eliminate potential errors by the concerned Discos.
