The present Pakistan Muslim League (Nawaz)-led federal government during its first year in power has been able to reduce the average electricity rate for consumers in Pakistan by Rs4.96 per Kwh.
The Power Minister, Awais Ahmed Khan Leghari, disclosed this in his presentation before the recently convened special meeting of the federal cabinet to review the one-year performance of the government. Leghari told cabinet colleagues and senior government functionaries that the average per unit cost of electricity in Pakistan had stood at Rs48.70 inclusive of all taxes in June 2024.
He said that the average per unit cost of electricity had been reduced due to a decrease in the interest rate, improved governance, and better policies for the power sector. He said the per unit rate of electricity for the industries had also been reduced by Rs11.69 during this one-year period and now stands at Rs46.81. He said the industries didn’t have to bear any more burden of cross-subsidies offered by the government to the power consumers in the other sectors.
Leghari said that extending relief to the power consumers in the country financially overburdened due to the high cost of electricity, which was one of the biggest challenges for the present government. Leghari said the government’s drive to rationalise its expensive power purchase agreements with 104 independent power producers in the country had also met phenomenal success.
The Power Minister recalled that a task force led by the prime minister had been formed to deal with the thorny issue of IPPs indulged in producing costly electricity for the national grid. He said that owing to successful efforts of the present government, five furnace oil-based IPPs had been shut down, and the power purchase agreements had been revised in the case of 14 IPPs. He said the revisions in power purchase agreements with the IPPs would generate an accumulative financial relief for the masses to the tune of Rs 1,333 billion.
