ISLAMABAD: Federal Minister for Energy, Sardar Awais Ahmed Leghari, underscored significant advancements in Pakistan’s power sector during a recent video message, emphasizing reforms in agreements with Independent Power Producers (IPPs) and steps toward affordable electricity.
Revised Agreements with IPPs
The Power Division has presented proposals to the federal cabinet for revising agreements with 18 additional IPPs. These amendments aim to enhance transparency and efficiency in the power sector, reflecting the government’s commitment to fostering equitable practices and optimizing power production costs.
Electricity Pricing for Industrial Zones
The Cabinet Committee on Energy has approved measures enabling Special Economic Zones (SEZs) and industrial estates to directly manage electricity distribution. Under the new framework:
Electricity will be provided at a single point to SEZs and industrial zones.
Zone management will oversee billing and new connections, addressing long-standing complaints from industrial consumers.
This initiative is expected to reduce operational bottlenecks and limit interference from distribution companies, ensuring streamlined services for industrial users.
Progress in Circular Debt and Recovery Rates
The circular debt saw a reduction of PKR 12 billion from July to November 2024, standing at PKR 2,381 billion as of November 30, 2024. Additionally, recovery rates improved significantly, reaching 96% for the same period, compared to 92% in 2023.
Minister Leghari highlighted that these reforms are delivering tangible results, ensuring a more affordable and sustainable power supply while addressing key inefficiencies in the system. The government remains committed to driving progress in the energy sector to meet consumer and industrial needs effectively.
