Addressing the National Assembly on Monday, Federal Minister for Power Sardar Awais Ahmad Khan Leghari stated that the government cannot raise the threshold for the protected power category. According to reports, the federal government would require a staggering Rs275 billion in subsidies to increase the threshold from 200 to 300 units.

 

While this change remains unfeasible under the current budget, the 6 minister highlighted the government’s efforts to provide affordable electricity to low use power users. He outlined that charges for households consuming up to 200 units a month had fallen by 60 percent over the last nine months. According to reports, this segment of electricity users receive a sizable subsidy to reduce the financial burden of high electricity bills on them.

 

While responding to a question in the National Assembly, the Power Minister revealed that 18.3 million of the 35 million electricity users nationwide are receiving power subsidies. These figures suggest that over 52 percent of electricity users benefit from subsidies provided by the federal government.

 

Data from reports suggests that the subsidy rate for electricity users consuming 100 to 200 units stands at 70 percent. However, the subsidy rate jumps significantly for users consuming 100 units or less, as their subsidy rate stands at 90 percent.

 

Moreover, while replying to a question posed by a Member of the National Assembly (MNA) regarding the provision of subsidized power to cryptocurrency mining operations in Pakistan, the Power Minister revealed that no power had been offered to mining companies at subsidized rates. Earlier this year, the federal government had allocated 2,000 megawatts of surplus power to crypto mining and to power artificial intelligence data centres. 

 

However, reports indicate that the Power Minister has clarified that no legal framework regarding power rates or tariff had been approved for crypto ventures. According to the minister, the federal government had introduced a power package for the industrial sector without subsidies to increase competitiveness.

 

Reports suggest that this package was going to allow exporters to boost their performance in the international market. As per the details, a staggering 7,500 Megawatts (MW) of extra power was available for the package, which could be used to improve grid stability. However, this move was to be made after discussions with the International Monetary Fund (IMF) and other development partners concluded.