by How Much 1 Unit of Electricity Costs in Pakistan? A 2025 Insight
Electricity is one of the most vital utilities in Pakistan, powering homes, industries, and businesses across the country. However, with increasing inflation and global energy price fluctuations, one pressing question continues to concern both residential and commercial users: How much does 1 unit of electricity cost in Pakistan?
As of 2025, the cost of 1 unit (1 kilowatt-hour or kWh) of electricity in Pakistan is not a fixed price for everyone. It varies based on consumer category, consumption level, fuel adjustments, taxes, and time of usage. Let’s explore how electricity is priced and what factors determine your monthly electricity bill.
Understanding What a Unit Means
Before diving into pricing, it’s important to know what a “unit” of electricity refers to. One unit equals 1 kilowatt-hour (kWh) — the energy consumed when you use a 1,000-watt appliance for one hour. For example, running a 100-watt fan for 10 hours also consumes 1 unit.
Current Per Unit Cost of Electricity in Pakistan (2025)
As of mid-2025, NEPRA (National Electric Power Regulatory Authority) has approved multiple slabs of pricing based on monthly electricity usage. Here’s a breakdown for domestic consumers:
| Monthly Units Consumed | Per Unit Rate (PKR) |
|---|---|
| 1 – 100 units | Rs. 11.50 – Rs. 13.50 |
| 101 – 200 units | Rs. 16.50 – Rs. 18.00 |
| 201 – 300 units | Rs. 21.00 – Rs. 23.00 |
| 301 – 700 units | Rs. 26.00 – Rs. 30.00 |
| 700+ units | Rs. 33.00 – Rs. 37.00 |
These rates are base tariff rates. Additional charges like Fuel Price Adjustments (FPA), GST (17%), TV fee, and Quarterly Tariff Adjustments (QTA) further increase the final per-unit cost, often adding Rs. 5–10 extra per unit depending on the month and global oil prices.
So, for a consumer using around 300 units a month, the actual cost per unit can range between Rs. 25 to Rs. 33, once all adjustments are factored in.
Commercial & Industrial Users
Commercial and industrial consumers are charged higher rates compared to domestic users.
- Commercial consumers may pay between Rs. 35 to Rs. 42 per unit.
- Industrial consumers are charged based on their load category and power factor, typically ranging from Rs. 28 to Rs. 38 per unit, excluding taxes.
Large businesses also often face Time-of-Use (TOU) tariffs, which charge different rates for peak and off-peak hours.
Time-of-Use (TOU) Tariffs
For high-usage residential, commercial, and industrial consumers using TOU meters, electricity prices vary throughout the day:
| Time Period | Approximate Rate (PKR/unit) |
|---|---|
| Peak Hours | Rs. 38 – Rs. 45 |
| Off-Peak Hours | Rs. 20 – Rs. 26 |
Peak hours are typically between 6 PM to 10 PM, when electricity demand is highest.
Subsidies & Relief Packages
The government of Pakistan often provides subsidies for low-income groups (especially lifeline consumers using less than 100 units/month). These consumers pay lower rates. However, as per IMF agreements and budget reforms, subsidies are gradually being phased out, leading to higher bills for the average household.
In the Budget 2025-26, a further Rs. 3 per unit increase is expected for higher slabs to reduce circular debt, while subsidies for lower usage tiers will be adjusted.
Why Electricity is So Expensive?
The rising cost of electricity in Pakistan can be attributed to several factors:
- Heavy reliance on imported fuels like oil and LNG
- High transmission & distribution losses
- Circular debt crisis, which stands above Rs. 2.6 trillion
- Dependence on IPPs (Independent Power Producers) with fixed capacity charges
- Weak governance and billing inefficiencies
Tips to Reduce Electricity Bills
- Use energy-efficient appliances (Inverter ACs, LED bulbs)
- Install solar panels to offset grid usage
- Turn off unnecessary lights and devices
- Shift usage to off-peak hours if on TOU meter
- Monitor monthly consumption to avoid higher tariff slabs
Conclusion
The cost of 1 unit of electricity in Pakistan depends heavily on how much you consume, when you consume it, and your consumer type. While small users may pay around Rs. 12 to Rs. 18, most households end up paying Rs. 25 to Rs. 35 per unit after all adjustments. With rising energy costs, smarter energy usage and alternative sources like solar power are becoming more essential than ever for the average Pakistani household.
