PM announces power relief package: industries to be provided electricity at 50% of the rate

Prime Minister Imran Khan unveiled on Tuesday a relief package of the electricity tariff for small and medium industries.

Addressing the media after chairing a federal cabinet meeting, the PM said the cost of electricity was expensive because previous contracts signed for power generation were expensive which had adverse effects for the country.

He added said that from 2013-2018 our exports, instead of rising, took a fall. So, he said, the government decided to raise our exports, because a country's wealth is related to its exports.

The PM said that Pakistan is the only country in the subcontinent that has progressed the fastest in terms of exports in the coronavirus pandemic.

The premier further said that the package will not only increase exports but would also give a boost to domestic industries. He said from November, small and medium industries using additional power will be provided electricity at 50% of the rate till June.

If they were buying electricity for Rs16/unit, they will now have to pay Rs8/unit for additional power, the PM said. "For the next three years, all industries will be provided additional power at 25% of the rate," the PM said.

He further announced that industries including large scale ones, will pay reduced electricity costs at all times, adding that there will be off-peak hours all the time.

Addressing the media, Minister for Industries and Production Hammad Azhar said that this was a tough decision taken by the government. He said before, at peak hours, between 7pm and 11pm, the electricity rate would increase by 25 % for industries. But now, Azhar added industries will be able to avail off-peak rates all 24 hours.