INP-WealthPk

Bijli Sahulat Package needs to be sustained for economic revival

February 04, 2025

Amir Saeed

Though the Bijli Sahulat Package is driving Pakistan's economic revival by providing affordable electricity, its long-term impact hinges on whether it remains a short-term initiative or is extended to sustain economic momentum.

Speaking to WealthPK, Ministry of Energy spokesperson said that in December 2024, the industrial sector saw a 7% increase in power consumption compared to the same period in 2023, demonstrating a significant rise in economic activity driven by the Bijli Sahulat Package. “This surge in demand reflects increased manufacturing, higher exports, and the creation of more jobs across various industries.”

The spokesperson highlighted that while solar energy generation has grown exponentially, from 300-350MW in 2021 to 3,300MW in 2025, the demand for grid power has continued to rise, indicating the substantial impact of the Bijli Sahulat Package. “The package has provided consumers with reliable, affordable electricity, which has helped fuel industrial growth and the broader economy.” He added that the continued growth in power consumption underscores the strength of the industrial sector, which is contributing significantly to overall economic performance.

“The rise in demand not only signals growth in manufacturing but also boosts related industries, driving employment and improving economic output. The Bijli Sahulat Package has played a crucial role in meeting this increasing demand by ensuring a steady and affordable power supply, which supports ongoing industrial activities,” he noted. “This trend of rising power consumption emphasises the need for future auctions of surplus power, which will help meet the country’s growing energy needs.

A review of the Bijli Sahulat Package will be conducted in three months, with plans to extend it for longer durations to ensure sustained economic growth and continued energy security for the industrial sector,” the energy ministry spokesperson said. Meanwhile, talking to WealthPK, Dr Anwar Shah, a development economic researcher at Quaid-i-Azam University, Islamabad, said that the Bijli Sahulat Package aims to boost economic growth by reducing electricity costs for industrial, commercial and domestic consumers.

He pointed out that by offering discounted rates, the package encourages increased electricity use, potentially stabilising the power sector's finances. “When production costs decrease, profits multiply, motivating industries to invest more, thus leading to job creation.” However, Shah concluded that the long-term impact of this initiative depends on its duration. “If it remains a short-term measure, its effects will be fleeting. For lasting economic revival, the package needs to be sustained overtime, fostering consistent growth and investment in the industrial sector.”

Credit: INP-WealthPk