The federal government has introduced major power sector reforms and relief measures in the Budget 2025–26, including substantial reductions in electricity tariffs for both industrial users and low-income households.
Delivering the budget speech in the National Assembly, Finance Minister Muhammad Aurangzeb announced that electricity costs for the industrial sector will be slashed by 31%, a move intended to lower production expenses and boost industrial competitiveness nationwide.
In a significant relief for the public, the minister also declared that 18 million domestic consumers will benefit from a 50% reduction in their electricity bills, providing much-needed financial relief for low-income households.
Alongside tariff reductions, the government is also advancing structural reforms in the power sector. According to the minister, privatization of the distribution companies (DISCOs) in Faisalabad, Gujranwala, and Islamabad is already halfway complete, with major groundwork in place to transition them to private ownership.
In another key initiative, the National Transmission and Despatch Company (NTDC) is being restructured into three separate entities to improve operational efficiency, governance, and system reliability.
Aurangzeb also confirmed that the government is targeting the completion of privatization for Pakistan International Airlines (PIA) and the Roosevelt Hotel within the upcoming fiscal year.
Highlighting the need for broader reforms, the finance minister emphasized the government’s commitment to privatizing key public-sector entities such as Discos and Gencos, saying such reforms are necessary to ease the burden on taxpayers.
“In matters of business, leadership should come from the private sector, not the government,” said Aurangzeb, while also noting that the cabinet has approved the downsizing of 10 ministries, merging six divisions into three as part of governance reform.
