Federal Minister for Power Sardar Awais Ahmed Khan Leghari met with international development partners to discuss Pakistan’s power sector reforms. The meeting aimed to bring efficiency and discipline to the power sector, reducing electricity prices for consumers and industries.
Key Reforms Discussed
- Transition from Take or Pay to Take and Pay: Aiming to reduce financial burdens on the power sector.
- Elimination of Furnace Oil-Based Plants: Shifting towards cleaner energy sources.
- Conversion to Local Coal: Promoting indigenous energy resources.
- Removal of Transmission Constraints: Upgrading infrastructure for efficient power distribution.
- Splitting of NTDC: Reorganizing the national transmission company for better management.
- Provision of Electricity to SEZs: Supporting special economic zones through dedicated power supply.
- Rationalization of Subsidies: Reviewing and optimizing subsidy allocation.
Goals and Commitments
- Reduce electricity prices for consumers and industries.
- Eliminate circular debt within five to eight years.
- Promote transparency and fairness in negotiations with Independent Power Producers (IPPs).
- Encourage private sector investment in the power sector.
- Develop a wholesale market for electricity to promote competition.
The meeting demonstrated the government’s commitment to transforming Pakistan’s power sector, ensuring affordable and reliable electricity for all.
