The Prime Minister’s Office (PMO) has directed a special task force to finalise recommendations on extending industrial electricity tariffs to Pakistan’s telecommunications sector, a step that could lower operating costs for mobile network operators and support investment in digital infrastructure.
The task force has been asked to consult Power Division and Finance Division and to submit proposals that cover the financial implications and a mechanism for absorbing the difference between commercial and industrial electricity rates. Its recommendations will then be considered by the federal government. According to Profit, the directive follows a joint request to Prime Minister Shehbaz Sharif from the chief executives of Jazz, CMPak (Zong), Pak Telecom Mobile Limited (Ufone and Telenor) and Pakistan Telecommunication Company Limited (PTCL). The operators want industrial electricity rates extended to licensed telecommunications infrastructure, and they point out that the sector pays higher commercial tariffs even though it is recognised as an industry under government policies and legislation.
A separate report by Business Recorder described the mandate of the task force and the proposed tariff framework in more detail. The body was formed on June 29, 2026, under the Secretary of the Ministry of Information Technology and Telecommunication, and it was assigned to examine industrial electricity tariffs, smart grid solutions and dedicated power feeders. Its first meeting took place on August 4. The operators say commercial electricity tariffs for their sites have increased by approximately 197 percent since 2018, while fuel costs have risen by around 300 percent. Over the same period, average revenue per user has declined by approximately 22 percent, and companies also carry an additional 5 percent withholding tax burden. They have warned that these rising expenses could affect approximately $2 billion in planned investment over the next three years, which is meant for 5G deployment, fibre expansion and data centres that are ready for artificial intelligence workloads.
On the scope of the proposal, the operators have suggested applying industrial rates to cellular towers, switching centres, exchanges, data centres, fibre nodes and network operating centres. Corporate offices, customer service centres, franchises and retail outlets would stay outside the arrangement, and Pakistan Telecommunication Authority (PTA) would certify which infrastructure is eligible. As an alternative, the companies have suggested creating a dedicated Digital or Telecom Infrastructure electricity consumer category. They have also pledged to reinvest any savings into 5G expansion, rural connectivity and fibre to the home services, which would extend coverage and speeds to more households and businesses across the country.
Industry estimates suggest that lower grid tariffs could encourage greater use of grid electricity and reduce reliance on off grid solar power at telecom sites, although these projections have not been independently verified. The proposal remains under review, and no final tariff change has been approved. Implementation will depend on the recommendations of the task force and on approval from the federal government, so operators and investors will be watching closely for the outcome of the consultations with Power Division and Finance Division in the coming weeks.
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