AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
ISLAMABAD: Pakistan’s government has announced a reduction in the national base tariff for electricity, setting it at PkR34.0 per kWh for the fiscal year 2026. This adjustment represents a 4% decrease from the previous year’s rate of PkR35.5 per kWh.
In a bid to address the ongoing challenges in the power sector, the government has also initiated significant reforms. A key component of this strategy is the introduction of a PkR1.25 trillion borrowing facility from commercial banks. This facility is aimed at reducing the country’s growing circular debt.
The resolution of the circular debt is expected to have positive implications for energy companies, according to AKD Securities Limited. Companies such as Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), and Pakistan State Oil (PSO) are anticipated to benefit from these reforms, with projected target prices set for December 2025.
The government’s commitment to power sector reform is seen as a critical step in stabilizing the energy landscape in Pakistan. As these measures are implemented, the outlook for the energy sector is poised for change, potentially enhancing operational efficiencies and financial health across the board.