Pakistan’s industrial sector is grappling with significantly higher electricity costs compared to major global economies, adversely affecting its export competitiveness. According to the International Energy Agency’s (IEA) ‘Electricity 2025: Analysis & Forecast to 2027’ report, average electricity prices for energy-intensive industries in 2024 were:
- United States: 6.3 cents per kilowatt-hour (kWh)
- India: 6.3 cents per kWh
- China: 7.7 cents per kWh
- European Union: 11.5 cents per kWh
- Pakistan: 13.5 cents per kWh
These figures indicate that Pakistan’s industrial electricity rates are more than double those of the US and India and significantly higher than China’s and the EU’s.
The IEA report highlights that elevated electricity prices have been undermining the competitiveness of energy-intensive industries, particularly in regions like the European Union, where industries have faced de-industrialization due to high energy costs. This trend underscores the critical importance of affordable power for economic growth and industrial sustainability.
The disparity in electricity costs poses a substantial challenge for Pakistan’s industrial sector, impacting its ability to compete in international markets. Addressing these high energy costs is essential for enhancing the country’s export performance and overall economic stability.
