On Saturday, Power Minister Sardar Awais Khan Leghari announced a significant achievement in the power sector, claiming Rs1 trillion in savings due to the government’s “whole-of-government” strategy in negotiating with Independent Power Producers (IPPs), with strong backing from Army Chief General Asim Munir.
During a press conference outlining the power sector’s nine-month performance, Leghari shared that revised agreements with 16 IPPs will be finalized soon. He confirmed the termination of agreements with five IPPs, saving Rs411 billion, and additional savings of Rs238 billion from settling accords with eight bagasse-based IPPs.
Leghari also highlighted ongoing negotiations with Chinese IPPs, excluding nuclear-related projects, and mentioned that debt restructuring of a nuclear power plant resulted in tariff savings of Rs1.5 per unit.
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The minister also addressed key reforms, including the reduction of solar net metering buyback rates and the upcoming privatisation of three Distribution Companies (Discos)—IESCO, GEPCO, and FESCO—by 2025. He revealed plans to repeal recent amendments by Nepra and introduce new reforms in the regulatory framework.
Regarding electricity tariffs, Leghari reported a reduction in average electricity prices from Rs48.70 to Rs44.04 per unit, with industrial prices dropping significantly. He also discussed measures aimed at boosting industrial growth, such as the elimination of Rs150 billion cross-subsidies.
The government’s efforts to privatise Discos, implement debt restructuring, and invest in transmission system upgrades are expected to lower electricity prices and reduce circular debt. Additionally, the development of a competitive electricity market through the Independent System and Market Operator (ISMO) will provide consumers with more electricity supplier choices.
On energy infrastructure, the minister confirmed plans to install a 1000MWh Battery Energy Storage System (BESS) and enhance the South-North transmission corridor.
The solarisation of agricultural tube wells in Balochistan, costing Rs55 billion, will be a joint federal and provincial initiative. Also, the Bijli Sahulat Package will offer special tariffs, providing savings to households, industries, and commercial sectors.
Leghari emphasized the importance of tackling poor recovery rates and circular debt, which contribute to rising electricity costs. He also noted plans to promote environmental sustainability through special tariffs for Electric Vehicles (EVs).
Lastly, the minister praised the Prime Minister, Army Chief General Asim Munir, and the support of key officials in driving these impactful reforms and negotiations with IPPs.
