Islamabad: Minister for Power Sardar Awais Ahmed Khan Leghari announced that the government is actively taking measures to reduce electricity prices and address the issue of circular debt. He made these remarks at the Pakistan Business Council’s Dialogue on the Economy in Islamabad this Tuesday afternoon.
According to Radio Pakistan, the minister emphasized the government’s efforts to renegotiate agreements with Independent Power Producers (IPPs) as the existing electricity pricing system is unsustainable. He detailed plans for the next phase, which involves signing revised agreements with IPPs, supported by prepared service level agreements.
Leghari also highlighted initiatives for industrial states and economic zones to manage their own distribution systems. He indicated that the government is considering privatizing the power distribution system, which would shift the responsibility of buying and selling electricity away from the government. This move would allow consumers and power companies to trade electricity affordably, benefiting both parties.
The minister mentioned the government’s efforts to alleviate the tax burden on electricity consumers. He also introduced the National EV Policy, aimed at promoting the adoption of electric vehicles by offering reduced electricity tariffs at charging stations.
Furthermore, Leghari noted that Chinese companies operating coal-fired power plants would transition to using locally extracted coal from the Thar region, instead of imported coal, to cut down on import costs.