Government Develops Winter Package for Affordable Industrial Electricity

The federal government is developing a “winter package” to offer affordable electricity for industries based on incremental consumption during the winter months, pending approval from the federal cabinet and the IMF. The package aims to boost industrial growth and reduce power plant capacity payment burdens, with an estimated cost of around Rs 25 billion.

The government faces challenges in covering this cost due to IMF and World Bank restrictions on subsidies. Measures to address these issues include introducing industrial tariffs based on cost of service and exploring mechanisms to reduce electricity costs. The package may also be expanded to benefit domestic consumers for heating purposes. Past support packages led to significant increases in electricity consumption, and the Power Division expects further growth. Karachi Electric anticipates no load management issues, and All Pakistan Textile Mills is seeking allocation of electricity from the Balloki power plant.