Latest news with #Rs7.41
Express Tribune
4 days ago
- Business
- Express Tribune
'Special relief in power tariff still in place'
A special relief involving a Rs7.41 per unit reduction in electricity price, as announced by Prime Minister Shehbaz Sharif, is still in effect despite a rising cost of electricity. According to a statement issued on Saturday by the Ministry of Energy, the cost of electricity generation is increasing due to the lowest hydropower generation in the country's history in recent months and the reliance on expensive power plants running on alternative fuels. "In view of this decline in hydropower production, the Ministry of Energy has issued directives to all provincial governments and relevant federal ministries to enforce Energy Efficient Building Codes, so that electricity bills can be reduced during periods of extreme heat and cold." In addition, it said, the government is preparing to offer energy-efficient fans — which consume up to 70% less electricity — on easy interest-free installments, which will help in replacing old fans and significantly lowering electricity bills. Federal Minister for Energy Ali Pervaiz Malik on Friday stated that power-generating companies are not utilizing imported gas as per agreements and resultantly expensive gas is being sold to domestic consumers at subsidized rates, leading to a rise in circular debt. "The power companies are violating their agreements, which is increasing the liabilities of the national gas importing companies," said Malik, while speaking to the media at the head office of the Sui Southern Gas Company (SSGC). Malik highlighted that the government's success in reducing electricity prices and maintaining current petrol and diesel prices is a significant achievement. However, relief in the electricity sector has become a burden on the petroleum sector.
Express Tribune
11-04-2025
- Business
- Express Tribune
Power division issues notification, reduces electricity prices by Rs1.71 per unit
Listen to article The Power Division has issued a notification announcing a reduction of Rs1.71 per unit in electricity prices for consumers across the country, including K-Electric. This price cut will be applicable from April to June 2025. According to the notification issued by the Power Division, the price reduction will benefit consumers nationwide, including those under K-Electric. However, the reduction will not apply to lifeline consumers. The price cut has been made possible through additional subsidies from the federal government. It is worth noting that, just a day prior, the National Electric Power Regulatory Authority (NEPRA) had approved the government's request to reduce electricity prices, including in Karachi, under the Petroleum Levy. NEPRA has sanctioned a price reduction of Rs1.71 per unit, and the decision has been forwarded to the federal government for implementation. This price reduction comes after a previous adjustment in electricity tariffs, where a Rs1.90 per unit reduction was applied to the quarterly adjustments for consumers across the country, including in Karachi. Earlier, Prime Minister Shehbaz Sharif had announced a reduction of Rs7.41 per unit for residential consumers on April 3, bringing the price of electricity for domestic users down to Rs 38.37 per unit. Additionally, a reduction of Rs7.59 per unit was announced for industrial consumers, lowering their electricity price to Rs40.60 per unit.
Express Tribune
10-04-2025
- Business
- Express Tribune
Government announces reduction in electricity tariffs across country
Listen to article Pakistan's power regulator has approved a Rs1.71 per unit reduction in electricity prices across the country, including Karachi, under the head of petroleum levy relief, officials said on Thursday. The National Electric Power Regulatory Authority (NEPRA) approved a federal government proposal to lower electricity tariffs and has forwarded its decision to the federal authorities for implementation. The price cut will apply for the April to June 2025 quarter and will benefit consumers nationwide, including those served by K-Electric. However, the relief will not be extended to lifeline consumers, NEPRA said in a statement. The federal government had submitted a request for the tariff reduction last month, following its move to increase petroleum levy on petrol and high-speed diesel by Rs10 per litre. The government said the power tariff cut was aimed at passing on relief to consumers from the additional revenue generated through fuel levies. NEPRA held a hearing on the proposal on April 4 and subsequently approved the price reduction. Previously, electricity tariffs were reduced by Rs1.90 per unit under quarterly adjustments for consumers across Pakistan, including Karachi. Earlier this month, Prime Minister Shehbaz Sharif also announced a significant electricity tariff reduction for domestic users, up to Rs7.41 per unit, bringing the average rate down to Rs38.37 per unit. For industrial users, a Rs7.59 per unit cut was announced, reducing the average tariff to Rs40.60 per unit.
Express Tribune
05-04-2025
- Business
- Express Tribune
Power tariff cut, but
The government has announced a 15% or Rs7.41 per unit reduction in electricity prices under seasonal tariff adjustments. This move is aimed at boosting consumption from the national grid and providing some relief to financially struggling households. The benefit reportedly covers about 40.3 million consumers, primarily 35 million residential users. However, this reduction comes at the cost of another long-promised relief — a cut in fuel prices, which are normally adjusted biweekly based on international markets. For the entire month, no such adjustment has been made, with the government stating that the benefit would instead be reflected in electricity bills. But that hasn't fully materialised. Initially, the public was told that electricity prices would drop by Rs10 to Rs15 per unit due to renegotiated terms with Independent Power Producers (IPPs), which were expected to reduce their profit margins. Instead of taking a hit, IPPs have been granted relief, and the anticipated benefits from declining fuel prices are being redirected into the electricity tariff reduction. This raises two concerns: Consumers are being shortchanged — the benefit of falling oil prices is not reflected at fuel stations. Electricity and fuel relief are being wrongly bundled together, even though they serve different sets of users. More than 50 million people rely on fuel daily, and they deserve separate and direct relief. The government must ensure that the benefits of international price changes are transparently and fairly passed on — both in fuel prices and electricity tariffs — without trading one off for the other. SM Arif Karachi
Express Tribune
05-04-2025
- Business
- Express Tribune
Telcos protest exclusion from tariff relief
Listen to article Telecom companies have expressed frustration and serious concerns over being excluded from the government's recently announced electricity tariff relief, citing the long-standing denial of industrial status benefits despite being declared an industry by the government in 2004. On Thursday, Prime Minister Shehbaz Sharif announced a significant reduction in electricity rates — a Rs7.41 per unit decrease in the national average tariff and a Rs7.69 per unit cut for industries. The relief was lauded as a positive development; however, telecom companies say they have once again been left out. Speaking to The Express Tribune, "The telecom sector was granted industry status in 2004, yet we continue to be denied the corresponding benefits," said Kamal Ahmed, Secretary General of the Telecom Operators Association (TOA). He said the sector continues to face high operational costs due to the lack of electricity tariff reductions for its core components. According to the association, power is one of the largest cost components for telecom operators, who must keep thousands of cell towers and data centres running round the clock. "Industrial electricity tariffs would significantly ease our operational costs," Kamal Ahmed added. Wahaj Siraj, Co-founder and CEO of Nayatel, also voiced concern over the exclusion of the telecom sector from the electricity relief package. "Great move to reduce electricity rates, but the telecom industry, data centres, cloud platforms, et al, don't get this rate despite being declared an industry by the government since 2004," he said on social media. He questioned how Pakistan could aspire to become an IT powerhouse when critical digital infrastructure such as data centres is deprived of industrial electricity rates. The telecom companies lamented that despite detailed hearings at the National Electric Power Regulatory Authority (NEPRA), telecom operators and data centres are still billed at commercial rates. "There is a disconnect between policy and implementation," Ahmed maintained. As the federal government prepares the budget for the fiscal year 2025-26, telecom companies have called for urgent tax and policy reforms to address mounting financial and regulatory challenges facing the crucial sector. The industry has urged the government to exempt telecom companies from withholding tax obligations under the Income Tax Ordinance (ITO) 2001, describing the current system as overly complex and burdensome. "Telecom operators are utility providers managing millions of transactions daily. The current tax regime increases compliance costs and stifles growth," the TOA Secretary General said. The industry is also seeking to reverse a change made under the Finance Act 2015, which converted adjustable withholding tax into a fixed minimum tax of 4% under Section 153(1)(b) of the ITO. This, they argue, disproportionately affects telecom companies, especially amid rising costs and high inflation. "Taxation should reflect actual earnings, not penalise compliant businesses with arbitrary fixed rates," Ahmed said. The association has also called on the government to end coercive tax enforcement actions such as freezing bank accounts or sealing offices. These measures, it argues, should be reserved for habitual defaulters, not compliant companies. "Tax recovery should begin only after an independent appellate tribunal reviews a case," Ahmed added. In a bid to retain skilled talent, the TOA also urged the government to introduce targeted tax relief for telecom employees. The rising tax burden on salaries, combined with inflation, has made it harder to attract professionals to the sector. The TOA is also advocating for the reduction of income tax under Section 236 - currently at 15%, up from 12.5% - and the rollback of the Federal Excise Duty (FED) rate from 19.5% to 16% under the Finance Act 2021. "Lowering these rates would not reduce government revenue, but rather support digital growth and long-term economic inclusion," Ahmed said.
