Budget 2024: Power tariff likely to reduce for industrial sector

ISLAMABAD: The power tariff is likely to be reduced for the industrial sector in the budget 2024, ARY News reported citing sources.

According to sources, the government is considering relief for industries in the upcoming budget 2024-25.

Sources said that the electricity tariff may be reduced for industrial consumers, who currently pay an additional Rs 240 billion in electricity bills.

According to sources, the Ministry of Industry and Production is working on various proposals to reduce power tariffs for export-oriented industries.

The proposals for tariff rationalization have also been shared with the International Monetary Fund (IMF). The government is expected to finalize the package after the Prime Minister’s approval.

The package is expected to provide benefits of around Rs 100 billion to the export sector in the upcoming budget.

READ: FY2024-25 budget to be ‘presented’ on THIS date

It is pertinent to mention here that the federal budget for the next fiscal year (FY2024-25) is likely to be presented on June 7, with an estimated total expenditure of Rs 16,700 billion.

According to sources, the initial estimate for expenditures on interest and loans is Rs 9,700 billion, while the initial estimate for subsidies is Rs 1,500 billion.

Sources said that the estimate for tax revenue is over Rs 11,000 billion, with direct taxes expected to contribute Rs 5,300 billion and federal excise duty expected to contribute Rs 680 billion.

Sales tax is likely to generate over Rs 3,850 billion, while customs duty is expected to generate over Rs 1,100 billion, sources said.