The reduction in the power tariff, especially for industrial consumers, is a welcome move. Its architects, including the caretakers’ team, must be credited for it. However, this is a small win, and the objective should be to have a bigger plan geared toward increasing the share of electrification — which is a cleaner and more efficient source — within final energy consumption.

To achieve this in the medium to long term, the implications on the fiscal side, supply chain, and other factors need to be carefully evaluated, and reforms within these are a must. There are many moving parts, and tariff is one part of the larger scheme to fix. The need is to bring all the energy puzzles into place.

According to Pakistan Energy Book data, in FY23, out of the total final energy consumption, electricity at 9.3 million TOEs (tons of oil equivalent) was a mere 20 percent of total use at 45.7 million TOEs. The lion’s share is with transportation (35 percent) and gas (31 percent).

And within transportation, 91 percent is consumed by oil, while electricity is zero (as E-tron and the like are rounding-off errors). Then in gas final energy consumption, 51 percent is used by households (mainly in stoves and space heating), while 41 percent is by industry (including captive........

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