ISLAMABAD— The Pakistani government’s tax collection through electricity bills saw a significant drop of Rs 110 billion in fiscal year 2024-25, totaling Rs 490 billion compared to Rs 600 billion the previous year. This substantial decline is largely attributed to the public’s growing adoption of solar energy and a sharp reduction in industrial electricity consumption.
Sources indicate that as more households shift to solar power, their reliance on grid electricity decreases, directly impacting both their bills and the associated tax revenue.
The industrial sector also played a major role in this downturn. Official data reveals that the country’s overall electricity consumption fell by 3.6 percent in the current fiscal year, with a staggering 27 percent-plus decrease in electricity usage by factories and industries.
While the Federal Board of Revenue (FBR) reported a total collection of Rs 5.8 trillion in the current fiscal year, the drop in tax revenue from electricity bills is raising concerns. Economists warn that if this trend persists, the government will need to urgently identify alternative tax sources to prevent a continuous decline in revenues. They emphasize that with evolving energy technologies, relying on traditional tax collection methods is no longer a viable long-term strategy.