Bi-component, polyacrylonitrile (PAN)/carbon nanotube (CNT) fibers were processed, at different core-sheath area ratios, by gel spinning. A percolated CNT network at 10 wt% CNT in the sheath enhanced electrical conductivity as compared to the neat PAN fiber, while PAN polymer in the core contributed to the good mechanical properties. Fibers with relatively thin sheath allowed overall CNT loading as low as 3.7 wt% to be made with good electrical conductivity, and PAN stabilization by Joule heating was demonstrated. Such fibers with combined good mechanical properties and electrical conductivity can also potentially be used for electrical heating of fabrics, for making smart textiles, and for electromagnetic interference shielding.