Federal Minister for Energy Awais Leghari announced on Monday that the government is making significant efforts to reduce electricity prices. Speaking to the media, Leghari outlined the government’s strategy to address key issues affecting power costs, including problems with Independent Power Producers (IPPs) and electricity theft by Distribution Companies (DISCOs).
“We are actively working on resolving issues related to power generation by IPPs and tackling power theft,” Leghari stated. He added that discussions with Chinese companies are also underway to address these concerns. “Our goal is to lower power tariffs while considering all relevant factors,” he said.
Earlier, Leghari revealed that the government has presented its reform plans and energy vision to China’s National Energy Administration. A crucial part of these negotiations involves restructuring a substantial debt estimated between $8.5 billion and $9 billion, which is expected to contribute to lower electricity prices and boost demand.
In addition, Leghari highlighted ongoing efforts to secure potential investments from Chinese bankers for Pakistan’s power sector. Another major reform includes transitioning power generation plants from imported coal to local coal. This change is anticipated to reduce the cost per unit of electricity from approximately 24 rupees to around 8 rupees.
The minister also mentioned plans to phase out older furnace oil plants, which are based on policies from 1994 and 2002. This move could result in annual savings of about 80 billion rupees. Despite these efforts, Leghari acknowledged the challenges posed by the devaluation of the rupee and high interest rates, particularly concerning capacity charges in the power sector.
