Telcos Set to Get Cheaper Electricity as Govt Nears Agreement

Prime Minister Shehbaz Sharif has directed a special task force to finalize recommendations for extending industrial electricity tariffs to telecommunications infrastructure, potentially reducing operating costs for cellular firms and supporting investment in 5G networks.

Key points

• While fuel costs have risen around 300 percent, according to the telecom CEOs, commercial electricity tariffs for telecom sites have rose approximately 197 percent since 2018.
• Its first session was held on August 4, 2026, under the chairmanship of the ministry's Special Secretary.
• P@SHA Tells NCCIA to Stop Confusing Legitimate IT Firms With Scam Centers.
• It amended Section 2(29C) of the Income Tax Ordinance to include PTA licensed telecom operators in the definition of an industrial undertaking.
• The operators further cited a November 9, 2018, NEPRA precedent extending industrial electricity tariffs to dairy and poultry farms.

For context, the Prime Minister's Office has asked the task force to consult the Power Division and Finance Division and submit recommendations covering financial implications and a proposed mechanism to absorb the tariff differential.

For context, the direction follows a joint appeal by the CEOs of Jazz, CMPak (Zong), PTMIL (Ufone and Telenor), and PTCL. This person have pressed the administration to extend industrial electricity rates to licensed telecommunications infrastructure.

P@SHA Tells NCCIA to Stop Confusing Legitimate IT Firms With Scam Centers. Telecom Operators Seek Industrial Tariff Relief.

In practice, the firms argue that telecommunications has long been recognized as an industry under administration policies and legislation but continues to face commercial electricity rates. They say rising energy costs are making investments in 5G, fiber connectivity, and AI ready data centers increasingly tough.

Meanwhile, a task force headed by the Secretary of the Ministry of Information Technology and Telecommunication was established on June 29, 2026, to examine industrial power tariffs, smart grid solutions, and dedicated electricity feeders for telecom infrastructure. Its first session was held on August 4, 2026, under the chairmanship of the ministry's Special Secretary.

Notably, the operators say they have committed approximately $2 billion in investments over the next three years for 5G deployment and fiber expansion, alongside investments in AI ready, Tier III data centers. How to File a Complaint Against Telcos in Pakistan. Electricity Costs Rise 197 Percent Since 2018.

While fuel costs have risen around 300 percent, according to the telecom CEOs, commercial electricity tariffs for telecom sites have rose approximately 197 percent since 2018. Average revenue per user has declined approximately 22 percent over the same period, alongside an extra 5 percent withholding tax burden.

In practice, the firms have cited the Mobile Cellular Policy, 2004, and a Ministry of Industries and Production notification issued on April 20, 2004, to backing their classification as an industry. They additionally referred to the Finance Act, 2021. It amended Section 2(29C) of the Income Tax Ordinance to include PTA licensed telecom operators in the definition of an industrial undertaking.

Notably, the operators further cited a November 9, 2018, NEPRA precedent extending industrial electricity tariffs to dairy and poultry farms. They additionally pointed to a January 6, 2026, policy directive requiring a task force to examine industrial tariffs, smart grid solutions, and dedicated feeders for the telecom sector. 6 Satellite Internet Firms Register in Pakistan. Telecom Firms Propose Investment and Grid Safeguards.

Notably, the firms argue that lower electricity costs would allow them to redirect savings toward 5G deployment, rural connectivity, and fiber to the home expansion. They additionally claim that industrial tariffs could encourage greater reliance on the national electricity grid instead of solar and other off grid arrangements.

Industry projections suggest that extending industrial tariffs could reduce the expansion of solar off grid operations from 15 percent to 5 to 7 percent while increasing grid utilization by 15 to 20 percent. Operators estimate that higher electricity consumption could offset potential revenue losses for distribution firms within two to three years. These figures are industry estimates and have not been independently verified.

To prevent misuse, the firms have proposed a PTA certified eligibility framework covering cellular towers, base transceiver stations, switching centers, exchanges, AI and cloud data centers, fiber nodes, and network operating centers. Corporate offices, customer service centers, franchises, and retail outlets would remain excluded. PTA Sets Rs. 1 Lac Internet Firm Fee. Operators Seek New Electricity Tariff Category.

For context, the telecom firms have asked the federal administration to matter a policy directive extending industrial electricity rates to eligible telecommunications infrastructure. Alternatively, they have proposed creating a dedicated Digital/Telecom Infrastructure consumer category under the existing tariff framework.

They have additionally requested instructions to distribution businesses to implement the revised category within a defined timeframe. The operators have pledged to reinvest the resulting savings in 5G expansion, rural connectivity, and fiber infrastructure, saying the proposed changes would backing Pakistan's digital economy and the government's Digital Nation Pakistan vision. Stay Connected with ProPakistani.

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Taken together, the developments around telcos Set to Get Cheaper Electricity as Govt Nears Agreement point to a situation that is still moving, and the coming days should bring more clarity.