Pakistan’s telecom companies are once again asking the government to provide them with cheaper electricity by moving their electricity bills from commercial rates to industrial rates. The telecom sector says high power costs are putting pressure on its business and making it harder to provide reliable mobile and internet services across the country.
To support their demand, telecom operators have now shared detailed information about their electricity use, power expenses and network operations with a government task force. The information is expected to help the government understand how much telecom companies spend on electricity and how much they could save if they were given industrial electricity rates.
The issue is important because telecom networks depend heavily on electricity. Mobile towers, data centres, exchanges, network equipment and other digital infrastructure have to keep working around the clock. Even a short power outage can affect mobile calls, internet services and other digital connections.
Telecom companies believe that cheaper electricity would reduce their operating costs and help them maintain better services. They also argue that the telecom sector has already been recognised as an industry in government policy, so it should receive the same electricity treatment given to other industries.
Telecom Companies Submit Electricity Data
According to the latest development, telecom operators have submitted detailed electricity-related information to a government task force. The data includes their total power expenses, electricity consumption, number of telecom sites and the commercial electricity rates they currently pay.
The companies have also provided estimates of how much money they could save if their electricity connections were shifted to industrial rates. Information about grid-connected sites and power requirements has also been shared with the government.
This information is important because telecom networks are spread across almost every part of Pakistan. Operators have thousands of sites in cities, towns, villages and remote areas. Each site needs electricity to keep communication services running.
The telecom industry says its electricity needs are not limited to offices. Power is directly linked to the operation of the network itself. Mobile towers, switching systems, data centres and other equipment require continuous electricity.
Because of this, operators say their electricity expenses should not be treated in the same way as those of ordinary commercial businesses.
Why Electricity Costs Matter So Much
Electricity is one of the major operating expenses for telecom companies. Unlike many businesses that can reduce their electricity use during certain hours, telecom operators cannot simply switch off their networks when electricity becomes expensive.
People expect their mobile phones and internet connections to work at all times. Businesses depend on mobile and broadband networks for payments, communication, online services and daily operations. Government departments, hospitals, banks and many other organisations also rely on digital connectivity.
This makes uninterrupted power especially important for telecom companies.
When electricity is unavailable, telecom operators often have to use backup arrangements. These can include generators, batteries and other power systems. Such backup systems add more costs because companies have to purchase fuel, maintain generators and replace batteries and other equipment.
The latest information submitted to the government task force also includes details about load-shedding, network disruptions, diesel costs and backup power arrangements. Operators have explained how long outages last and how they affect their services.
Telecom Sector Wants Industrial Tariff
The main demand from telecom operators is simple: they want to pay industrial electricity rates instead of commercial rates.
The sector has been raising this issue for years. Telecom companies have argued that they should receive industrial electricity rates because the government has already recognised telecommunications as an industry for various purposes.
However, the electricity tariff issue has remained complicated.
In 2022, the National Electric Power Regulatory Authority, or NEPRA, rejected a request from telecom companies to shift from commercial to industrial electricity rates. At that time, the regulator said that being classified as an industrial undertaking under tax law did not automatically give a business the right to receive an industrial electricity tariff.
The decision created a major gap between the telecom industry’s position and the rules used for electricity billing.
Telecom companies continued to argue that their infrastructure and operations should qualify them for industrial rates.
A Long-Running Dispute
The demand for lower electricity rates is not new.
Telecom companies had previously argued that their network infrastructure is similar to that of other large-scale industries because it involves large investments, specialised equipment and continuous operations.
In 2022, telecom operators including PTCL, Telenor, Ufone, Jazz and Zong supported the request for industrial electricity tariffs. The companies argued that the telecom sector had been recognised as an industrial undertaking under changes to the Income Tax Ordinance.
However, the energy authorities had a different view.
The argument at the time was that industrial electricity rates were designed mainly for factories involved in manufacturing, processing or adding value to goods. Telecom companies, according to that position, did not fit the traditional definition of a factory.
The government also raised concerns about the possible financial impact of allowing telecom companies to shift to cheaper electricity rates.
This shows why the issue has taken so long to resolve.
Government Forms Task Force
The latest development suggests that the government is now taking another serious look at the matter.
A task force has been formed to study how industrial electricity tariffs could be extended to telecom companies following the sector’s industrial status. The task force includes officials from the Ministry of IT and Telecommunication, Power Division, NEPRA, Pakistan Telecommunication Authority, telecom operators and electricity distribution companies.
The involvement of several government departments and industry representatives shows that the matter is being considered from different sides.
The task force will look at the actual electricity requirements of telecom operators and the possible financial impact of changing their tariff category.
The data submitted by telecom companies will help the task force understand the situation in greater detail.
Power Outages Are Another Major Problem
Electricity prices are not the only concern for telecom companies.
Power outages can also create serious problems for mobile and internet networks.
When grid electricity is unavailable, telecom operators must rely on backup systems. In many locations, generators are used to keep equipment running. These generators require diesel or other fuel, which increases operating expenses.
Battery backup systems are also used at many telecom sites. However, batteries have a limited life and need to be replaced after a certain period.
This means that an electricity outage can increase costs even when the operator is not paying for grid electricity during that period.
Telecom companies have therefore shared information about load-shedding and the use of generators and other backup systems with the government task force. They have also explained how outages can lead to disruptions in network services.
Dedicated Power Feeders Under Consideration
The government task force is not only looking at electricity prices.
It is also considering other ways to make power supply more reliable for telecom infrastructure.
One option being discussed is the use of dedicated power feeders for important telecom sites. These feeders could help reduce disruptions and provide a more stable electricity supply.
Smart-grid solutions are also being considered. Such systems can help electricity providers monitor and manage power supply more effectively.
For telecom operators, a reliable electricity supply could be almost as important as a lower electricity price.
If telecom sites receive a stable supply, companies could reduce their dependence on diesel generators and other backup systems.
Lower Costs Could Support Better Services
If telecom companies receive industrial electricity rates, the immediate benefit would be lower operating costs.
However, the industry says the benefits could go beyond company savings.
Lower operating costs could make it easier for telecom operators to invest in network expansion, new equipment and better services.
Pakistan is increasingly depending on digital services. Mobile banking, online shopping, digital payments, remote work, online education and internet-based businesses all require reliable connectivity.
A stronger telecom sector can support the wider digital economy.
Lower electricity expenses could therefore give operators more room to invest in network quality and coverage, particularly in areas where operating costs are already high.
Rural Areas Face Bigger Challenges
Providing telecom services in remote and rural areas can be more expensive than operating networks in major cities.
Many rural sites are located far from major electricity infrastructure. Some areas also face longer power outages.
When electricity is unreliable, telecom operators have to spend more on backup power.
These higher costs can make it difficult to maintain network sites in less profitable locations.
Telecom companies have previously argued that expensive electricity has forced them to reconsider operations at some rural locations. They have also said that high energy costs can make it difficult to maintain uninterrupted connectivity.
For customers in remote areas, reliable mobile and internet service can be extremely important. Mobile connectivity may provide the only practical way to access online services, banking, education and communication.
Therefore, reducing the cost of operating rural telecom sites could also help improve digital access outside major cities.
Data Centres Also Need Reliable Power
The discussion is not limited to mobile towers.
Data centres and other digital infrastructure also need large amounts of electricity.
Pakistan wants to expand its digital economy, cloud services and technology sector. These areas require reliable data infrastructure.
Data centres cannot afford frequent power interruptions because even short outages can affect online services.
This is why the telecom industry believes that electricity policy should take the needs of digital infrastructure into account.
The issue has also attracted attention in previous electricity tariff discussions. In 2025, telecom industry representatives complained that telecom companies, data centres and cloud platforms were excluded from electricity relief even though the telecom sector had been given industry status.
What the Government Must Decide
The government now has to decide how industrial electricity rates can be applied to telecom operators.
The task force is expected to study the data provided by telecom companies and consult electricity distribution companies before making recommendations.
The final framework will need to balance two important goals.
On one side, telecom operators want lower costs so they can continue investing in their networks and digital infrastructure.
On the other side, the government has to consider electricity sector finances and the impact of lower tariffs on overall revenue.
A decision that reduces telecom companies’ costs without creating a major burden on other electricity consumers will be important.
More Consultations Expected
The government is expected to hold further discussions with telecom operators and electricity distribution companies before finalising the framework.
These consultations will help officials understand the practical challenges involved in changing the tariff category.
Questions about eligibility, electricity connections, site locations, billing systems and the financial impact will likely need to be addressed.
The government may also need to decide whether all telecom sites should receive industrial rates or whether the facility should apply only to certain types of infrastructure.
These details could play an important role in the final policy.
What This Could Mean for Pakistan’s Digital Future
Pakistan’s telecom sector has become a basic part of everyday life. Millions of people depend on mobile networks and internet services for communication, work, education, business and entertainment.
As the country moves towards a more digital economy, the need for reliable telecom infrastructure will continue to grow.
Electricity is at the heart of this infrastructure.
If telecom operators have to spend a large share of their income on electricity and backup power, they have less money available for network expansion and new technology.
A more suitable electricity tariff could therefore help the sector manage costs and invest in future growth.
At the same time, the government must make sure that any relief is carefully planned and does not create new financial problems for the electricity sector.
Final Decision Could Be Important for Telecom Industry
The latest submission of electricity data by telecom operators marks another important step in the long-running debate over industrial electricity tariffs.
The industry has made its case by providing detailed information about power consumption, expenses, network sites, outages and backup arrangements. The government task force will now study this information and work on possible solutions.
The discussion is about more than just reducing an electricity bill.
For telecom companies, power costs directly affect the cost of keeping mobile towers, data centres and other network systems running. Lower electricity costs could help operators manage their expenses, reduce dependence on generators and invest more in network improvements.
For the government, the challenge will be to create a fair system that supports the telecom industry without putting additional pressure on other electricity consumers.
The coming consultations between telecom operators, power companies and government departments will therefore be important.
If an agreement is reached, telecom companies could receive a major reduction in their operating costs. More importantly, Pakistan could benefit from stronger and more reliable digital infrastructure, helping the country move further towards a connected and technology-driven economy.
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