By Abdul Ghani

The government is planning to introduce special electricity tariffs for new high-technology industries, including electric vehicles (EVs), batteries and data centres, under the proposed National Industrial Policy (NIP) 2026, according to the policy document available with Wealth Pakistan.

The proposed measure is part of the government’s broader strategy to improve the cost competitiveness of the industrial sector and attract investment into new and innovative industries.

According to the NIP, the government supports full implementation of the Energy Wheeling Policy and regular monitoring of its impact on export-oriented industries. The policy also proposes special tariffs for new high-technology greenfield sectors, with rates set just above marginal cost.

The proposed tariff framework specifically identifies electric vehicles, battery manufacturing and data centres among the sectors that could benefit from special power arrangements.

The move could help reduce one of the major structural challenges facing new industrial investment in Pakistan — high energy costs — while making emerging technology-intensive industries more competitive.

The NIP also proposes reduced tariffs for existing industrial units that consume incremental power beyond specified thresholds, potentially encouraging manufacturers to expand production and increase electricity consumption for productive activity.

Alongside tariff reforms, the policy calls for continued upgrading of transmission and distribution infrastructure, recognizing that reliable electricity supply is essential for industrial expansion and high-technology operations.

The proposal forms part of a wider supply-side reform programme under which the government intends to lower production costs, improve industrial infrastructure and encourage investment in sectors with high productivity and export potential.

The power-cost initiative comes within a broader 19-point industrial reform agenda designed to reposition Pakistan’s industrial sector as an engine of investment, productivity, employment and exports.

The NIP identifies high energy and input costs among the structural constraints that have weakened industrial competitiveness. It therefore places cost reduction at the centre of its industrial strategy.

The policy also proposes reducing tariff-like taxes on imported inputs used by exporters, improving industrial land and infrastructure, strengthening technology adoption and aligning workplace skills with industrial requirements.

If implemented effectively, the proposed electricity incentives could improve the investment case for EV manufacturing, battery production and data-centre infrastructure in Pakistan, while encouraging existing industrial units to increase productive capacity.

However, the document frames the proposed tariffs in fiscal and infrastructure terms, meaning implementation and the actual rate structure will be important in determining their impact.

The NIP’s broader objective is to make Pakistan a lower-cost, more predictable and investment-friendly location for productive industry, while supporting higher productivity, greater value addition and export-led industrial growth.

Credit: INP-WealthPk