Pakistan’s Industrial Electricity Prices Nearly Double Those in China, India, US: Report

Pakistan’s industrial sector is paying nearly double the electricity rates compared to China, India, and the United States, according to the International Energy Agency’s (IEA) latest report, Electricity 2025 — Analysis & Forecast to 2027. The report doesn’t specifically mention Pakistan’s problems but explains in detail the type of challenges faced by other regions where average electricity prices were 18 percent lower than in the South Asian economy. In 2024, industrial electricity prices in Pakistan averaged 13.5 cents per kilowatt-hour (kWh), significantly higher than the 6.3 cents in the US and India, 7.7 cents in China, and 11.5 cents in the European Union. The report noted that high energy costs are pushing industries out of Europe, a situation that could mirror Pakistan’s economic challenges. Global electricity demand is forecast to grow at 4 percent annually through 2027, driven by rising industrial production, data center expansion, and increasing electrification. However, Pakistan’s expensive electricity remains a big issue for economic growth and export competitiveness. The report also mentions that in the European Union, India, the United Kingdom and the United States, wholesale electricity prices fell by around 20% on average in 2024 compared with the previous year. This was broadly in line with the fall in global energy commodity prices. Nevertheless, prices in these regions – except for the United States and the Nordic region in Europe – are still significantly above their preCovid levels.