World Bank backs Pakistan plan to introduce time-of-use tariff for industry

The government is developing a new Time-of-Use electricity tariff structure aimed at encouraging industries to maximise operations during daytime hours and reduce consumption during peak evening periods, as part of efforts to improve energy efficiency and strengthen the competitiveness of the power sector.

Federal Minister for Power Sardar Awais Ahmed Leghari said the Power Division is currently assessing concessional tariff models and consulting stakeholders while finalising proposals designed to optimise demand patterns and support industrial growth.

The minister shared the plan during a meeting with Bolormaa Amgaabazar, where both sides reviewed ongoing reforms and cooperation in the energy sector.

He said electricity consumption in Pakistan has been rising steadily, reflecting increased economic activity and the impact of recent policy measures, adding that the government’s priority is to make electricity tariffs more competitive for key economic sectors.

Officials indicated that the proposed tariff framework is intended to leverage the country’s expanding solar generation capacity by promoting greater use of electricity during daylight hours, when supply from renewable sources is typically higher.

The minister also said the government is considering major policy measures to increase reliance on indigenous energy resources for power generation, noting that recent developments in the Middle East have reinforced the urgency of reducing dependence on imported fuels.

During the meeting, he acknowledged the continued support of the World Bank in implementing energy sector projects and reaffirmed the government’s commitment to working closely with the institution to strengthen transmission and distribution systems and advance renewable energy integration.

The World Bank country director welcomed the reform agenda and reiterated the bank’s readiness to support Pakistan in priority areas, including tariff rationalisation, grid modernisation and expansion of clean energy infrastructure.