ISLAMABAD: Federal Energy Minister Awais Leghari announced significant reforms in the power sector on Friday, including the termination of agreements with Independent Power Producers (IPPs) to reduce electricity tariffs. Speaking at a briefing hosted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), he revealed that electricity rates could drop by Rs5 per unit following renegotiations with additional IPPs.
“Contracts with five IPPs have already been terminated, and agreements with 11 more are underway. We’ve also reached new terms with bagasse-based plants,” Leghari stated. He emphasized the need for affordability, noting, “High-priced electricity has no buyers. Moving forward, no such IPPs will be established in Pakistan. This marks a transformative shift in our energy strategy.”
Leghari underscored that the government is committed to eliminating inefficiencies, declaring, “There are no sacred cows in the power sector anymore.” He also mentioned plans to inform the federal cabinet about discontinuing future electricity purchases from IPPs.
Addressing DISCO performance, the minister highlighted progress in reducing distribution company (DISCO) losses, which fell to Rs11 billion in the first four months of the financial year, down from a projected Rs350 billion. “With the establishment of boards of governors and the induction of top talent from public and private sectors, DISCOs are delivering better results,” he added.
Leghari also discussed the recently introduced winter power package, which offers a tariff of Rs26 per unit for consumption exceeding routine usage. “This package is designed as an incentive and is not tied to seasonal changes,” he explained.
The minister credited Pakistan’s business community for driving economic momentum, stressing that the government’s initiatives aim to support industrial and commercial growth by providing affordable energy solutions.
Story by Zaigham Naqvi
