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ARY NEWS

Aleem Malik

  • Electricity consumers set to pay billions in capacity payments this fiscal year

    Electricity consumers set to pay billions in capacity payments this fiscal year

    ISLAMABAD: Electricity consumers will continue to bear the burden of substantial capacity payments in the new fiscal year started on July 2025, ARY News reported.

    According to official documents, the estimated capacity payments for the fiscal year 2025-26 are estimated at Rs 1,766 billion. It means the electricity consumers will have to pay Rs 17.06 per unit.

    However, there is a slight relief, as capacity payments are expected to decrease by Rs 1.34 per unit on an annual basis.

    The official documents also revealed that the revenue requirements for the next fiscal year are estimated to decrease from Rs 3,768 billion to Rs 3,521 billion.

    The distribution margin is projected to rise from Rs 391 billion to Rs 396 billion. Additionally, an estimated Rs 174 billion will be collected from consumers under the Use of System Charges.

    The value of the US dollar for the new fiscal year has been revised downward from Rs 300 to Rs 290.

    Meanwhile, the cost of electricity generation is expected to decrease by Rs 1.27 per unit, and transmission losses are estimated at 11.04 percent for the upcoming year.

    Read More: Govt ‘decides’ to abolish PTV fee from electricity bills

    Earlier last month, the Power Division has submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) to reduce electricity prices across Pakistan, including Karachi, through the implementation of a uniform tariff system

    According to reports, NEPRA will hear the request on July 1, with adjustments set to take effect in the upcoming fiscal year.

    As per the proposal, electricity prices for domestic users may drop by Rs 1.16 per unit, bringing the maximum tariff down from Rs 48.84 to Rs 47.69 per unit. This move is expected to ease the burden on middle-income households and low-usage consumers alike.

    For protected users consuming up to 100 units, electricity prices could fall to Rs 10.54 per unit, while those using 101 to 200 units may see a revised rate of Rs 13.01 per unit.

  • Power Division proposes electricity price cut across Pakistan, including Karachi

    Power Division proposes electricity price cut across Pakistan, including Karachi

    ISLAMABAD: The Power Division has submitted a proposal to the National Electric Power Regulatory Authority (NEPRA) to reduce electricity prices across Pakistan, including Karachi, through the implementation of a uniform tariff system, ARY News reported.

    According to reports, NEPRA will hear the request on July 1, with adjustments set to take effect in the upcoming fiscal year.

    As per the proposal, electricity prices for domestic users may drop by Rs 1.16 per unit, bringing the maximum tariff down from Rs 48.84 to Rs 47.69 per unit. This move is expected to ease the burden on middle-income households and low-usage consumers alike.

    For protected users consuming up to 100 units, electricity prices could fall to Rs 10.54 per unit, while those using 101 to 200 units may see a revised rate of Rs 13.01 per unit.

    Lifeline users consuming up to 50 units will continue paying Rs 3.95 per unit, with no increase proposed.

    Previously, NEPRA approved a Rs 1.50 per unit cut in base electricity prices for the new fiscal year and referred the matter to the federal government of Pakistan for implementation under a single national tariff policy.

    Read More: Govt ‘decides’ to abolish PTV fee from electricity bills

    Earlier, the federal government provided relief to electricity consumers by abolishing the PTV fee from electricity bills.

    Currently, the government is charging Rs 35 PTV fee of from electricity consumers in different categories, which will now be eliminated.

    With over 40 million electricity consumers across the country, the move is anticipated to benefit a vast population.

    The PTV fee, which generates approximately Rs 1.5 billion monthly, will no longer be collected.

    An official announcement from the federal government is expected soon.

  • Pakistan to expand 4G services to far-flung areas

    Pakistan to expand 4G services to far-flung areas

    Pakistan government has decided to expand 4G services to the country’s far-flung areas to bridge the digital divide in underserved regions.

    As per details, the Universal Service Fund (USF) Board has approved seven major projects aimed at expanding broadband and fiber optic infrastructure across Pakistan.

    The decision was taken under the leadership of IT Secretary and USF Board Chairman Zarar Khan, with a total investment of Rs7.49 billion.

    The approved projects include five broadband service initiatives and two fiber optic deployments, covering 940 kilometers of fiber to connect 347 villages and 113 towns/union councils in 12 districts.

    According to USF, these projects will benefit around 2.8 million residents through fiber connectivity and 965,000 individuals via broadband services.

    Zarar Khan noted that the accelerated rollout, guided by Federal IT Minister Shaza Fatima, is enabling thousands of skilled youth and women from remote areas to participate in the freelancing and digital startup ecosystem.

    Read more: 200,000 telecom jobs given after 4G launch, NA told

    So far, USF has facilitated access to broadband for over 37 million people nationwide.

    USF CEO Mudassar Naveed shared further details, stating that Rs3.27 billion will be spent to lay 415 km of fiber optic cable in Sanghar, while Rs2.38 billion will fund 525 km of cable in areas around Jhang.

    The initiative will also bring 4G connectivity to rural parts of Attock, Khushab, Sargodha, Bahawalpur, Faisalabad, Hafizabad, Sheikhupura, Chiniot, Badin, and Abbottabad.

    The Board of Directors commended USF for its critical role in boosting Pakistan’s IT sector growth and digital exports.

  • NEPRA approves electricity tariff reduction

    NEPRA approves electricity tariff reduction

    ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs1.50 per unit in the basic electricity tariff, bringing relief to consumers.

    The new average tariff for power distribution companies will be set at Rs34 per unit, according to the NEPRA decision.

    The authority has forwarded its ruling to the federal government for official notification, which will be issued following the government’s decision on subsidies.

    Earlier, the NEPRA has reduced K-Electric’s (KE) tariff by Rs2.99 per unit.

    According to a notification issued here, the reduction has been made under monthly fuel adjustment for March which will reflect in the June electricity bills, offering some respite of KE consumers amid soaring power costs and prolonged load-shedding in Karachi.

    Meanwhile, the city has been grappling with intensified unannounced load-shedding as summer heat peaks, drawing protests not only from residents but also from elected representatives.

    In a recent interview on ARY News, K-E CEO Moonis Alvi conceded the high electricity costs but deflected responsibility, attributing the pricing to government policies.

  • K-Electric consumers likely to get Rs.4.69/unit relief

    K-Electric consumers likely to get Rs.4.69/unit relief

    K-Electric consumers likely to get Rs4.69 per unit relief as the National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct hearing on the KE’s plea today (Monday), ARY News reported. 

    In welcome news for residents of Karachi, electricity tariff may drop by Rs4.69 per unit for Karachi consumers as NEPRA is scheduled to hold a hearing today regarding K-Electric’s petition for a reduction in tariffs under the monthly fuel adjustment mechanism.

    If approved, the proposed cut would provide a financial relief of approximately Rs7.17 billion to K-Electric users.

    Earlier on June 5, the National Electric Power Regulatory Authority (NEPRA) reduced K-Electric’s (KE) tariff by Rs2.99 per unit.

    According to a notification issued, the reduction was made under monthly fuel adjustment for March which will reflect in the June electricity bills, offering some respite of KE consumers amid soaring power costs and prolonged load-shedding in Karachi.

    Read more: NEPRA notifies reduction in KE tariff

    Meanwhile, the city had been grappling with intensified unannounced load-shedding as summer heat peaks, drawing protests not only from residents but also from elected representatives.

    In a recent interview on ARY News, K-E CEO Moonis Alvi conceded the high electricity costs but deflected responsibility, attributing the pricing to government policies.

  • K-Electric tariff likely to be slashed by Rs.4.69/unit

    K-Electric tariff likely to be slashed by Rs.4.69/unit

    ISLAMABAD: The electricity tariff is likely to be decreased for K-Electric consumers by Rs4.69 per unit, ARY News reported on Thursday.

    In welcome news for residents of Karachi, electricity tariff may drop by Rs4.69 per unit for Karachi consumers as NEPRA is scheduled to hold a hearing on June 19 regarding K-Electric’s petition for a reduction in tariffs under the monthly fuel adjustment mechanism.

    If approved, the proposed cut would provide a financial relief of approximately Rs7.17 billion to K-Electric users.

    Earlier on June 5, the National Electric Power Regulatory Authority (NEPRA) reduced K-Electric’s (KE) tariff by Rs2.99 per unit.

    According to a notification issued, the reduction was made under monthly fuel adjustment for March which will reflect in the June electricity bills, offering some respite of KE consumers amid soaring power costs and prolonged load-shedding in Karachi.

    Read more: NEPRA notifies reduction in KE tariff

    Meanwhile, the city had been grappling with intensified unannounced load-shedding as summer heat peaks, drawing protests not only from residents but also from elected representatives.

    In a recent interview on ARY News, K-E CEO Moonis Alvi conceded the high electricity costs but deflected responsibility, attributing the pricing to government policies.

  • Journalists boycott post-budget pressor for skipping finance bill briefing

    Journalists boycott post-budget pressor for skipping finance bill briefing

    ISLAMABAD: Journalists staged a walkout from Finance Minister Muhammad Aurangzeb’s post-budget 2025-26 press conference in Islamabad today, ARY News reported.

    As per details, the journalist were protesting the Federal Board of Revenue’s (FBR) failure to provide a technical briefing on the Finance Bill 2025-26.

    The briefing, traditionally held to clarify tax proposals for media coverage, was not conducted yesterday.

    Responding to the boycott, Information Minister Attaullah Tarar acknowledged the journalists’ concerns, stating their grievances were “absolutely valid” and affirming their right to protest.

    Addressing the media, Tarar apologized and assured that the FBR chairman had committed to holding the technical briefing. “I will speak to them; the technical briefing must take place,” Tarar said, adding that he had joined the journalists in solidarity with their protest.

    Following Tarar’s apology and assurance, the journalists ended their boycott of the press conference.

     

    Yesterday, Finance Minister Muhammad Aurangzeb presented the Rs 17.573 trillion Budget for 2025-26 in the National Assembly.

    The finance minister congratulated Pakistan’s military and political leadership, highlighting the country’s exceptional success against its enemies. “Our armed forces displayed extraordinary capability and responded to threats with full strength,” he said.

    He stated this was the coalition government’s second budget and highlighted the government’s success in achieving a primary surplus of 2.4 percent of GDP. Inflation, he noted, had also significantly decreased to 4.7 percent due to timely policy measures.

    Also read: LIVE: FinMin Aurangzeb addresses post-budget presser

  • Govt introduces digital tax law targeting social media and online businesses

    Govt introduces digital tax law targeting social media and online businesses

    ISLAMABAD: The Government of Pakistan has introduced a new digital tax law that mandates taxation on earnings generated from YouTube, social media platforms, and various online services, ARY News reported.

    According to reports, income derived from audio, video, and music streaming services will now be subject to tax, along with other digital sectors.

    The legislation also applies to telemedicine, e-learning platforms, cloud services, and online banking in Pakistan. Furthermore, e-commerce websites, online stores, and digital marketplaces will also fall under the scope of the new tax regulation.

    Banks and exchange companies involved in transferring payments to foreign companies in exchange for goods or services will be required to deduct a 5 percent tax.

    This tax must be deposited into the Pakistan national treasury by the 7th of each month. Failure to deduct or deposit the tax will result in legal action against the concerned financial institutions.

    Under the new framework, all social media platforms operating in Pakistan are now obligated to submit quarterly reports to the government.

    Read More: Budget 2025-26 at a glance

    Similarly, any institution responsible for processing foreign purchases must submit a detailed quarterly report that includes the buyer’s name, national identity card number, date of payment, and the amount involved.

    A penalty of Rs 1 million will be imposed on failure to submit the required quarterly report. Additionally, if a foreign company fails to comply with tax payments for three consecutive months, the bank transfers to that entity will be suspended.

    This move is part of the government’s broader effort to enhance digital economy regulation and ensure tax compliance from rapidly growing online sectors.

    The move come after Pakistan’s Finance Minister Muhammad Aurangzeb announced Federal Budget 2025-26 on Tuesday, June 10, 2025. Here is a brief summary of all his major announcements.

    Economic Performance & Reforms

    • GDP Growth: Expected at 4.2% for FY2025-26.

    • Inflation: Reduced to 4.7% (from 29.2% two years ago), targeted at 7.5% for FY2025-26.

    • Fiscal Discipline: Primary surplus at 2.4% of GDP, budget deficit at 3.9% of GDP.

    • Remittances: Increased by 31% ($31.2B in 10 months), expected to reach $38B by year-end.

    • Foreign Reserves: Projected to hit $14B by year-end.

    • Debt Management: Debt-to-GDP ratio reduced from 74% to 70%, with further cuts planned.

    Tax & Revenue Reforms

    • FBR Digital Transformation: AI-based audits, e-invoicing, and faceless customs to curb evasion.

      • Results: 47% revenue increase from sugar sector, Rs30 crore recovered from non-filers.

    • Tax Relief for Salaried Class:

      • Reduced rates: 5% → 1% (income Rs600K–1.2M), 15% → 11% (up to Rs2.2M).

      • Super tax cut: 0.5% reduction for firms earning Rs10M–500M.

    • New Measures:

      • Carbon Levy: Rs2.5/liter on petrol/diesel (rising to Rs5/liter in FY2026-27).

      • E-commerce Tax: 18% sales tax on digital goods/services.

      • Pensioners Tax: 5% on annual pension income above Rs1 crore (for under-70s).

    Energy Sector Reforms

    • Power Sector Savings: Rs3,000B saved via IPP renegotiations, 3,000MW furnace oil plants shut.

    • Privatization: DISCOs (Faisalabad, Gujranwala, Islamabad) halfway privatized.

    • Renewable Energy: Rs67.2B allocated for hydro projects (Dasu, Mohmand dams).

    Infrastructure & Development

    • PSDP Allocation: Rs1,000B for federal projects, focusing on:

      • Transport: Rs328B for roads (Karachi-Balochistan highway, Sukkur-Hyderabad motorway).

      • Water Security: Rs133B for dams (Diamer-Bhasha, Mohmand) and irrigation.

    • Reko Diq Project: Expected to generate $75B over 37 years, create 41,500 jobs.

    Social Protection & Welfare

    • BISP Expansion: Rs716B allocation (+21%), covering 1 crore families.

    • Education: Rs9.8B for “knowledge schools” in underserved areas.

    • Health: Rs14.3B for projects, including Jinnah Medical Complex (Islamabad).

    • Salary/Pension Increase:

      • 10% hike for federal employees (Grade 1–22).

      • 7% increase in pensions.

    Sector-Specific Initiatives

    • Agriculture: Rs2,066B in loans (+16%), new interest-free loans for small farmers.

    • IT & Exports: ICT exports up 21.2% ($3.1B), target of $25B in 5 years.

    • Housing: Tax cuts on property (WHT reduced from 4% to 2.5%), incentives for low-cost housing.

    • Overseas Pakistanis: Special courts, quotas in universities, and civil awards for top remitters.

    Climate & Sustainability

    • Green Financing: $40B expected from World Bank/IFC over 10 years.

    • Pakistan’s First Green Sukuk issued for climate projects.

    Privatization & SOEs

    • PIA & Roosevelt Hotel: Privatization targeted for FY2025-26.

    • SOE Reforms: 45 entities to be privatized/closed, 40,000 vacant posts abolished.

    Key Messages

    • Digitalization: FBR reforms aim to boost tax-to-GDP ratio to 14%.

    • Export Growth: Tariff reforms to align with Vietnam/Indonesia, reducing duties to 0–15%.

    • Anti-Evasion: Stricter enforcement on non-filers, e-commerce, and cash transactions.

  • NEPRA orders KE to end Karachi loadshedding

    NEPRA orders KE to end Karachi loadshedding

    ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has directed K-Electric (KE)to adopt different measures immediately to improve operational performance and avoid load-shedding in Karachi, ARY News reported.

    In the month of May 2025, during scorching weather and heatstroke, Karachi residents have been experiencing K-Electric load-shedding, and the outages last up to 12 hours in some areas.

    In reply to rising complaints, the NEPRA has directed K-Electric to enhance its operational competence and reduce power outages.

    The regulatory company has highlighted that K-Electric’s load-shedding is hurting businesses and daily life in Karachi, which is the largest city of the country and also known as an industrial hub.

    NEPRA has also directed KE to improve the standards of recovery and minimise losses to ensure a continuous power supply.

    Additionally, Penalties have been imposed on KE and other companies by NEPRA for baseless load-shedding.

    Recent reports specify that KE is generating costly electricity from its sources, depending increasingly on the National Transmission and Dispatch Company (NTDC) system.

    The regulatory company has criticised KE for not providing inexpensive electricity to customers and warned that it won’t be tolerable in the ongoing disorganisation.

    NEPRA has also ordered K-Electric to submit a report within seven days, providing the details of the actions taken to decrease load-shedding.

    Read More: Govt to file review plea in Nepra over K-E’s tariff decision: Leghari

    Minister for Energy Awais Ahmad Leghari has said that the government is filing a review petition in NEPRA’s recent verdict K-Electric’s tariff.

    “A review petition has been under preparation,” talking to media persons, energy minister said on Thursday.

    “We are working to avoid adverse effect on the government and consumers,” minister said. “We will go to the National Electric Power Regulatory Authority (NEPRA) to get appropriate power price for consumers,” Leghari said.

    “Hopefully the NEPRA will will give decisions for the benefit of the country and the consumers,” he said.

  • PM Sharif directs to ‘accelerate’ DISCOs privatization process

    PM Sharif directs to ‘accelerate’ DISCOs privatization process

    ISLAMABAD: Prime Minister (PM) Shehbaz Sharif has directed authorities to expedite the privatization process of power distribution companies (DISCOs), ARY News reported on Tuesday, quoting sources.

    As per details shared by sources, the premier has directed authorities to complete the process either through full privatization or by transferring management of the DISCOs to the provinces.

    The directive comes in light of International Monetary Fund (IMF) conditions, which require Pakistan to complete pre-privatization measures by January 31, 2025, as part of structural reforms for the upcoming fiscal year.

    Sources within the Power Division confirm that the IMF has demanded faster implementation of the privatization agenda.

    In the first phase, the privatization of Islamabad Electric Supply Company (IESCO), Gujranwala Electric Power Company (GEPCO), and Faisalabad Electric Supply Company (FESCO) will be prioritized, as these companies have relatively lower losses compared to other DISCOs.

    Read more: DISCOs restrained from new staff recruitment, promotions

    The second phase will involve consultations on long-term concession agreements for other distribution companies.

    The companies included in this phase are Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Hyderabad Electric Supply Company (HESCO).

    Meanwhile, Peshawar Electric Supply Company (PESCO), Sukkur Electric Power Company (SEPCO), and HESCO are also being considered for privatization under long-term contractual frameworks, sources added.