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Pakistan: Business community questions impact of government's energy tariff package

Published on: Feb. 21, 2026, 3:20 p.m. | Source: The Tribune

According to Dawn, the package includes a three-year incremental plan featuring a Rs4.04 per unit reduction for industry and a shift in tariff rebasing from a fiscal year to a calendar year cycle starting January 1, 2026. The government maintains that both small and large industries received a benefit of Rs10.3 per unit on surplus electricity consumption. However, industrial representatives dispute these claims. They argue that the relief primarily benefited inactive or limited scale units, while larger B3 and B4 category industries, which contribute no losses to the grid but pay higher tariffs, saw little real advantage. Business leaders also contend that rising fuel costs and quarterly adjustments have effectively wiped out much of the announced reduction.

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