Govt abolishes electricity duty to ease burden on consumers

PM Shehbaz Sharif announces PTV fee removal and tariff cuts

30 June 2025
Govt Abolishes Electricity Duty to Ease Burden on Consumers

In a bid to bring long-awaited relief to millions of power consumers, Federal Minister for Energy Awais Leghari has officially requested all provincial governments to abolish the electricity duty charged through monthly power bills starting July 1, 2025.

The minister, in a letter addressed to the chief ministers of all provinces, emphasised that this move is part of the government’s broader reforms aimed at reducing electricity prices in Pakistan and simplifying the billing system. He called the electricity duty an unnecessary financial burden on consumers already grappling with rising tariffs.

“Power bills have become a serious concern for households across the country,” Leghari stated. “It’s our collective responsibility to ensure that consumers only pay for the actual cost of the electricity they consume — nothing more.”

He also encouraged provincial authorities to explore alternative ways of generating revenue instead of relying on power bills for duty collection. “These reforms can only succeed with full provincial cooperation,” he added.

This development follows Prime Minister Shehbaz Sharif’s announcement just a day earlier, in which he revealed the removal of the Pakistan Television (PTV) license fee from power bills nationwide. The move was announced during the launch of the new “Apna Meter, Apni Reading” mobile app in Islamabad, part of a wider strategy to increase transparency and accountability in the power sector.

The prime minister highlighted a "four-pronged challenge" — including electricity theft, low consumption, circular debt, and production costs — that continues to plague the energy sector. He revealed that around Rs500 billion worth of electricity is stolen each year, calling for swift and decisive action against theft.

Addressing concerns about falling electricity consumption, Mr. Sharif said the trend reflects the country’s accelerating shift toward solar energy. He assured the public that the government will not discourage solar power use and remains committed to protecting consumers' rights during the ongoing reform process.

He also announced a significant reduction in electricity prices by Rs4.5 per unit after successful negotiations with independent power producers (IPPs). A further Rs7.5 per unit cut was enabled by declining global oil prices — a rare relief for consumers facing mounting economic pressure.

These bold steps reflect the government's renewed focus on affordability, transparency, and reform in the energy sector. As momentum builds, many are hopeful that the commitment to reducing electricity prices in Pakistan will translate into real savings for ordinary citizens.