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ISLAMABAD, Jan 01 (APP):The Power Division has released its annual performance report for 2025, highlighting historic reforms, improved financial discipline, significant consumer relief and major strides toward sustainable development in the energy sector.
According to the report, the government, through prudent policies and effective decision-making, achieved notable progress in addressing long-standing challenges facing the power sector. It said transparent and successful negotiations with Independent Power Producers (IPPs) eliminated a cumulative financial burden of Rs 3,400 billion on consumers and the national exchequer. As a result, electricity tariffs were reduced by Rs 8.35 per unit for domestic consumers and up to Rs 16.68 per unit for industrial consumers.
The report stated that closure of inefficient and obsolete power plants helped reduce an additional Rs 7 billion burden on electricity consumers. It added that a special relief package of Rs 22.98 per unit was introduced for industrial and agricultural consumers, boosting productive activities and supporting economic growth.
By cancelling unnecessary power projects amounting to 9,500 megawatts, the government provided a relief of Rs 1 per unit to consumers, while reducing circular debt by Rs 780 billion without taking on new loans was termed a major financial achievement. The abolition of Rs 35 PTV fee from electricity bills also addressed long-standing public grievances.
During 2025, the privatization process of three power distribution companies (DISCOs) was initiated to improve efficiency and service delivery. The report further noted that tariffs for electric vehicle charging stations were reduced by 44 percent, encouraging the adoption of modern and environmentally friendly transport.
Special relief measures were also extended to flood-affected areas through bill waivers and payment concessions. Transparency was enhanced through the launch of the “Apna Meter, Apni Reading”mobile application, empowering consumers to submit meter readings directly, while the introduction of the 118 helpline helped eliminate preferential treatment and ensured equal service for all consumers.
The report said competitive and transparent bidding led to a 40 percent reduction in smart meter prices, and improvements in the smart metering system are expected to benefit consumers by over Rs 100 billion annually. It added that 55 percent of electricity generation in the country now comes from environment-friendly sources, positioning Pakistan as a prominent player in the regional green energy landscape.
Reaffirming its commitment, the Power Division said it would continue to provide electricity to domestic and industrial consumers in line with international prices and standards.
It expressed confidence that the journey of reforms, transparency and public relief would continue with full momentum in 2026 as well.