ISLAMABAD: Pakistan has abolished electricity duty in power bills from the month of July, the country’s energy ministry said on Monday, in a bid to ensure transparency in tariff.
Power Minister Awais Leghari had written letters to chief executives of all provinces and informed them about the decision to discontinue the collection of electricity duty, according to the ministry.
He said high electricity tariffs were already a challenge and the additional burden of various levies further complicated the billing structure, making it difficult for consumers to manage their power costs.
“As part of this initiative, the Power Division has decided to discontinue the collection of electricity duty through electricity bills starting from July 2025,” Leghari was quoted as saying.
“We request provincial governments to explore alternative mechanisms for collecting provincial levies and duties, rather than relying on electricity bills as a collection channel.”
He said the federal government was making structural reforms to reduce tariffs such as renegotiating contracts with Independent Power Producer (IPP) and lowering the Return on Equity (ROE) for government-owned power plants, according to the energy ministry statement.
Leghari sought support from the provincial chief ministers in removing the complexity arising from multiple charges, taxes and duties being collected through consumer bills.
“He expressed the confidence that this will not only make electricity bills more transparent and easier to comprehend but also ensure that consumers are paying only for the cost of electricity, rather than a mix of other charges,” the statement read.
Pakistan has aggressively pursued reforms in its energy sector recently, which has long struggled with financial strain due to circular debt, power theft and transmission losses. These problems have led to blackouts and high electricity costs throughout the country, especially during the summers when demand peaks.
On Sunday, Prime Minister Shehbaz Sharif launched a mobile application that allows power consumers to record and submit their meter readings themselves, with the government saying the initiative will lead to more transparency in the system and reduce overbilling.
Electricity bills are generated in Pakistan every month by readings obtained from power meters installed at homes and businesses. These readings show the number of electricity units consumed during a monthly cycle and are taken by meter readers employed by power companies.
Pakistani power consumers have frequently complained of overbilling and incorrect readings taken by meter readers.
“This app... is a revolutionary technological reform whose benefit will reach every consumer in every home,” Sharif said at the app’s launch.
Pakistan abolishes electricity duty in bills to ensure tariff transparency
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Pakistan abolishes electricity duty in bills to ensure tariff transparency
- The move aims to simplify the billing structure, make it easier for consumers to manage power costs
- It follows launch of a mobile app that allows power consumers to record, submit their meter readings
Pakistan extends airspace ban on Indian-registered aircraft by another month
- This is the 8th extension of the ban after an attack in Indian-administered Kashmir triggered an India-Pakistan conflict in May
- The restriction has forced Indian airlines to reroute their flights, increasing fuel consumption, travel times and operating costs
ISLAMABAD: Pakistan has extended a ban on Indian-registered aircraft from using its airspace until late February, the Pakistan Airports Authority said on Wednesday, prolonging restrictions that have disrupted flight routes for Indian airlines.
Pakistan first imposed the restriction on April 24 as part of a series of tit-for-tat measures announced by both countries days after an attack in Indian-administered Kashmir.
New Delhi blamed the attack, which killed 26 tourists, on Pakistan. Islamabad denied any involvement and called for a credible, international investigation into the attack.
Tensions quickly escalated after India targeted several sites in Pakistan and Azad Kashmir, triggering intense missile, drone and artillery exchanges before a US-brokered ceasefire took effect on May 10.
“The ban on Indian flights has been extended till 5am on February 24,” the PAA said in a statement. “The ban will apply to aircraft owned, operated or leased by Indian airlines, including military flights.”
This marks the eighth extension of the ban, which has forced Indian airlines to reroute international flights, increasing fuel consumption, travel times and operating costs.
Last month, Pakistan accused India of blocking humanitarian assistance destined for Sri Lanka after Cyclone Ditwah, saying a special Pakistani aircraft carrying aid was forced to wait more than 60 hours for overflight clearance.
Pakistan later sent relief supplies and rescue teams to the island nation by sea, officials said.
