The Ministry of Energy has announced a significant reduction in electricity tariffs, bringing relief to consumers across Pakistan. The average national electricity rate has dropped from Rs 48.70 per unit in June 2024 to Rs 39.64 per unit in August 2025, marking a decrease of Rs 9.06 per unit.

Speaking to the National Assembly, ministry officials explained that Pakistan is currently experiencing an excess in electricity production capacity. However, the underutilization of the grid is driving up costs for consumers, creating a complex challenge for the power sector. Efforts to improve efficiency have included reducing industrial subsidies from Rs 225 billion to Rs 74 billion and cutting distribution company losses from Rs 591 billion to Rs 397 billion.

The ministry also highlighted difficulties faced in areas like Islamabad’s I-14 and I-16 sectors, where about 70% of properties are non-residential. This mix has complicated the installation of electricity infrastructure, alongside rising concerns about theft of electrical line materials, adding further strain to the system.

In a related development, the Petroleum Division announced the lifting of the ban on new domestic RLNG (Re-gasified Liquefied Natural Gas) connections. Priority for these connections will be given to applicants who have already paid fees or those looking to switch from local gas supplies to RLNG, aiming to improve access to cleaner energy sources for households.

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For many Pakistanis, the reduction in electricity costs comes as a much-needed relief amid rising living expenses. Yet, the government’s message is clear: addressing systemic inefficiencies and improving infrastructure remain key to sustaining these benefits and ensuring affordable, reliable power for all.