Islamabad: The Government has approved a new uniform electricity tariff system for Special Economic Zones and Industrial Estates, a move aimed at bolstering industrial development across the nation. The Cabinet Committee on Energy, chaired by Prime Minister Shehbaz Sharif, sanctioned the initiative during a meeting held in Islamabad.
According to a statement by Ministry of Information and Broadcasting, the new system will introduce single-point power supply to Industrial Estates and Special Industrial Zones, allowing their management to handle power connections, bill collection, and other related tasks independently. This system is designed to minimize the intervention of power distribution company officials in these zones.
The Power Division and NEPRA will begin implementing the system over the next three months, creating a specific operations and management mechanism. Zone developers will not be required to obtain additional licenses to supply power to industries within the zones, expediting the process.
Prime Minister Sharif emphasized the significance of industrial growth for the country’s economic progress and directed that the new system be applied to all special economic zones. He highlighted that providing electricity at a uniform tariff would accelerate industrial development, boost employment, and increase exports.
The meeting also addressed the circular debt, noting that there was a decrease of 12 billion rupees in the first five months of 2024 compared to a 368 billion rupees increase from July to November 2023. Overall, a 380 billion rupee improvement in circular debt was reported for the current fiscal year compared to the previous one.
Additionally, the meeting revealed that power sector receipts increased by four percent, reaching 96 percent during the first five months of the current fiscal year. Losses in electricity distribution companies decreased by 53 billion rupees due to improvements in their operations.
The Prime Minister reiterated the government’s commitment to ongoing power sector reforms, which have resulted in a reduction of 4.64 rupees in electricity prices in the current fiscal year. Efforts are also underway to provide cost-effective, eco-friendly, and uninterrupted power supply to the general public, including revising contracts with Independent Power Producers to lower costs for consumers.