Cheaper Electricity for Telecom Firms in Pakistan
Cheaper electricity for telecom firms in Pakistan is a step closer, as Prime Minister Shehbaz Sharif has directed a special task force to finalise recommendations for extending industrial electricity tariffs to telecom infrastructure, a step that could cut power costs for mobile operators and speed up 5G rollout.
The Prime Minister’s Office has asked the task force to consult the Power and Finance Divisions and submit recommendations on the financial impact and how to absorb the tariff difference, ProPakistani reported on Wednesday.
The direction follows a joint appeal by the chief executives of Jazz, CMPak (Zong), PTMIL (Ufone and Telenor), and PTCL for industrial electricity rates on licensed telecom infrastructure.
What the operators asked for
The companies argue that telecom has long been recognised as an industry under government policy and law, yet it still pays commercial electricity rates. They say rising energy costs are making investment in 5G, fibre, and AI-ready data centres harder to justify.
A task force headed by the IT Ministry Secretary was set up on June 29, 2026, to examine industrial power tariffs, smart grids, and dedicated feeders. It first met on August 4, 2026.
The operators say they have committed about $2 billion over the next three years for 5G and fibre expansion, plus investment in AI-ready, Tier III data centres. Lower bills, they argue, would let them redirect savings toward 5G rollout, rural connectivity, and fibre to homes.
Why cheaper electricity for telecom matters
The case rests on sharp cost increases. The chief executives say commercial electricity tariffs for telecom sites have risen about 197% since 2018, while fuel costs have risen around 300%. Average revenue per user has fallen about 22% over the same period, alongside an extra 5% withholding tax burden.
Networks run on power around the clock, so electricity is a top running cost. The scale is large: JazzWorld revenue rose 27% to Rs144.9 billion in the third quarter of 2026, and PTCL Group posted Rs4.7 billion in profit for the same quarter. Even so, the operators say power costs eat into the money they need for expansion, while PTA network quality surveys have now reached Lahore and Karachi to test the networks customers rely on.
The legal case for industrial rates
The operators cite the Mobile Cellular Policy of 2004 and a Ministry of Industries notification of April 20, 2004, to support their classification as an industry. They also pointed to the Finance Act of 2021, which amended Section 2(29C) of the Income Tax Ordinance to include PTA-licensed telecom operators in the definition of an industrial undertaking, and to a November 9, 2018, NEPRA precedent that extended industrial electricity tariffs to dairy and poultry farms.
To prevent misuse, the companies propose a PTA-certified eligibility framework covering towers, base transceiver stations, switching centres, exchanges, AI and cloud data centres, fibre nodes, and network operating centres. Corporate offices, customer service centres, franchises, and retail outlets would stay outside it.
What happens next
The companies have asked for a policy directive extending industrial rates to eligible telecom infrastructure, or a dedicated Digital or Telecom Infrastructure consumer category.
They have also asked distribution companies to apply the revised category within a set timeframe, pledging to reinvest savings in 5G, rural connectivity, and fibre under the Digital Nation Pakistan vision.
Industry projections suggest the change could cut solar off-grid growth from 15% to between 5% and 7% and raise grid use by 15% to 20%, offsetting possible revenue losses for distribution companies within two to three years. These figures are industry estimates and have not been independently verified. The task force must now weigh those claims against the cost to the power sector before its recommendations reach the prime minister.
What it could mean for users
For mobile users, the direct effect would be gradual. Cheaper power does not cut call or data rates by itself, but it changes what operators can afford to build: more towers and fibre mean better coverage in towns with weak signals, and faster progress on 5G in the cities. The push fits a wider shift, as six firms have registered for satellite internet in Pakistan and the PTA has proposed trial-period rules for new internet technology.
Frequently asked questions
What did the prime minister direct the task force to do?
He directed it to finalise recommendations for extending industrial electricity tariffs to telecom infrastructure, after consulting the Power and Finance Divisions on the cost and how to absorb it.
Which companies made the joint appeal?
The chief executives of Jazz, CMPak (Zong), PTMIL (Ufone and Telenor), and PTCL made the appeal together.
How much have telecom power costs risen?
Commercial electricity tariffs for their sites have risen about 197% since 2018, fuel costs around 300%, and average revenue per user has fallen about 22%.
