Govt to Abolish Cross-Subsidies and Peak Electricity Rates in Industrial Power Tariffs

The government has outlined a comprehensive industrial policy that includes the removal of cross-subsidies in power and gas tariffs, the abolition of peak electricity rates, and sweeping regulatory reforms. The policy, expected to be unveiled soon, aims to create a business-friendly environment by addressing long-standing issues, including high energy costs, tax anomalies, and bureaucratic hurdles. According to a report, senior officials confirmed that these measures are designed to attract foreign investment, protect industrialists from undue interference, and streamline processes to support economic growth. One of the cornerstone measures of the new policy is the removal of cross-subsidies from industrial power and gas tariffs, along with the elimination of peak electricity rates. These changes, confirmed by top officials in the Power and Petroleum Divisions, are expected to significantly reduce energy costs for industries, making Pakistani exports more competitive in global markets.