Business

Fixed power charge to be levied per kW, not per connection

Published

2 minutes ago

February 11, 2026

• Sanctioned load to determine monthly bill regardless of use
• Industry freed from cross-subsidy, govt tells hearing

ISLAMABAD: The government on Tuesday reluctantly conceded that the industrial sector had, for the first time, been fully freed from cross-subsidy to compete globally, as it disclosed a higher-than-previously known financial impact of the newly imposed fixed charges on residential electricity consumers.

At an almost one-way public hearing on Rs4.04 per unit average cut in power rates for industrial consumers and imposition of fixed charges on residential consumers, industrial consumers, power division and the National Electric Power Regulatory Authority (Nepra) were all praise for each other for a long overdue “great move” and “first step in the right direction”.

No representative appeared on behalf of more than 28.5 million residential consumers who will be subject to the fixed charges.

The power division team, led by Additional Secretary Mehfooz Bhatti and comprising the chief financial officer of Power Planning and Management Company (PPMC), Naveed Qaiser, reported that fixed charges would be collected from residential consumers at the rate of Rs200-675 per kilowatt a month and not Rs200-675 per connection per month.

This means the charge will be linked to the sanctioned load regardless of consumption. A consumer with a 2kW sanctioned load would pay Rs400 per month at a Rs200 per kW rate, while a 5kW consumer would pay Rs2,500 per month at Rs500 per kW. A 6kW sanctioned load would attract Rs4,050 per month at Rs675 per kW.

Mr Qaiser said it was also for the first time that a two-part tariff would be charged to consumers to cater for the Rs2.56 trillion annual fixed cost of capacity. While the move reduces about Rs101bn cross-subsidy from industrial consumers, the recovery of fixed charge would increase by Rs132bn, to Rs355bn (10 per cent) from Rs223bn (7pc) at present, excluding 18pc GST and other surcharges and duties.

He said that about Rs31bn to be collected through fixed charges would be used to reduce the variable tariff of consumers using more than 300 units per month to minimise their incentive to move away from the national grid, while the remaining Rs101bn would be used to ease the industrial burden.

Mr Bhatti said the industrial tariff would now come down to around 11.50 cents per unit from around 13, although it was still higher than regional competitors, but involved no cross-subsidy.

Separately, the financial advisory firm Optimus Capital Management worked out the average power tariff for protected consumers in the first 100-unit slab, increasing by 76pc or Rs8 per unit due to the fixed charge. The average cost for 101-200 units in the protected category would see an increase of Rs4 per unit (or 31pc).

For the non-protected category, Optimus estimated a 74pc increase — about Rs16.50 per unit — for the first 100 units, followed by a 21pc increase (about Rs6 per unit) for the 101-200 unit slab.

It said the net average tariff, including fixed charges, would rise for all domestic consumers, including by 13pc for 201-300 units, 6.5pc for 301-400 units, 5.8pc for 401-600 units per month and about 5pc for consumption above 600 units. The only net reduction — about 7pc — would apply to time-of-use consumers with sanctioned load above 5kW.

Published in Dawn, February 11th, 2026

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Business

Comprehensive Economic Partnership Agreement in final stages: UAE envoy

Published

50 minutes ago

February 11, 2026

hussainbinnoman3@gmail.com

LAHORE: Ambassador of the United Arab Emirates Hammad Obaid Ibrahim Salem Al-Zaabi revealed on Tuesday that Pakistan and the UAE are at the final stage of signing a Comprehensive Economic Partnership Agreement (CEPA), which would significantly boost bilateral trade and remove business obstacles between the two countries.

“The current trade volume of around $8 to $10 billion does not reflect the true strength of relations. So our government wants to double this figure as soon as possible,” he said while speaking at the Lahore Chamber of Commerce and Industry on Tuesday. LCCI President Faheem Ur Rehman Saigol welcomed the envoy.

The ambassador further said that the UAE is rapidly shifting towards an AI-driven, digitised economy, where nearly 99 per cent of government services are available online. Referring to the visa process, the envoy said both countries are working to streamline procedures through digital systems.

He appreciated the efforts of Pakistan’s Ministry of Interior and said discussions were underway with the Punjab Skilled Labour Authority to enhance cooperation in skilled workforce mobility.

Eyes doubling of bilateral trade to $16-20bn

He emphasised that he is personally working at operational and technical levels to ensure that all signed agreements, including CEPA and other trade frameworks, are fully implemented.

The ambassador said the UAE is expanding investments in Pakistan in key sectors, including infrastructure, ports, aviation, agriculture, minerals and railways. He revealed that discussions with Pakistan’s Railway Ministry are progressing and new agreements related to supply chain connectivity from northern regions to Karachi, including the possibility of a dry port, would be announced soon. He added that the Joint Business Council is being activated, and efforts are underway to hold its meeting at the earliest.

Published in Dawn, February 11th, 2026

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Business

Preferential Trade Agreement with Cambodia on cards

Published

1 hour ago

February 11, 2026

hussainbinnoman3@gmail.com

ISLAMABAD: Pakistan and Cambodia have agreed to work toward establishing a Preferential Trade Agreement (PTA) to support deeper commercial cooperation, Cambodia’s Minister of Commerce Cham Nimul said on Tuesday.

The Cambodian minister said the primary purpose of her visit to Pakistan was to explore new trade and investment opportunities through structured business to business linkages. During the visit, Cham Nimul met with Commerce Minister Jam Kamal Khan and Foreign Minister Ishaq Dar and visited the IICCI and FPCCI to engage with the local business community.

Speaking at the ICCI, Cambodia’s Minister of Commerce Cham Nimul said that PTA would help translate strong trade potential into actionable outcomes, ensure faster market access, streamline clearance procedures, and provide a viable pathway for Pakistani investment, particularly in support of Cambodia’s healthcare needs and regional competitiveness.

Inviting Pakistani entrepreneurs to invest in Cambodia, Ms Nimul highlighted the country’s Special Economic Zones, which offer incentives including tax holidays, import duty exemptions, and streamlined administrative services under the Council for the Development of Cambodia.

She also expressed keen interest in footwear, surgical instruments, and pharmaceutical sectors, where Pakistan has developed internationally recognised capabilities, export-ready manufacturing bases, and compliance with global quality standards.

Published in Dawn, February 11th, 2026

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