ISLAMABAD: Pakistan’s Federal Minister for Energy, Awais Leghari, has candidly admitted that the country has the highest electricity costs in the region. Speaking at the National Youth Convention in Islamabad, Leghari emphasized the government’s commitment to addressing these high costs, particularly through resolving ongoing issues with Independent Power Producers (IPPs).
Leghari revealed that, contrary to the commonly cited figure of 45,000 MW, Pakistan’s actual power generation capacity stands at 29,000 MW. He pointed out that the nation’s year-round electricity demand is only 7,000 MW, with peak demand reaching up to 24,000 MW.
The minister highlighted the financial burden of maintaining an excess capacity of 1,845 MW, which is only needed for about 85 hours each year. This surplus capacity costs the national exchequer Rs 50 billion annually. Leghari suggested that by tolerating 85 hours of load shedding spread over 40 days, the country could save these significant costs.
Furthermore, he noted that enduring 874 hours of load shedding per year—roughly 10% of the year—could potentially save Pakistan up to PKR 100 billion in capacity payments, which are the costs incurred to prevent load shedding.
“Capacity payments are the price we pay to avoid load shedding,” Leghari explained, reiterating the high cost of electricity in the region and underscoring the need for strategic reforms.
The minister also announced that within the next one to two months, the government, in cooperation with intelligence agencies and other institutions, will unveil positive developments regarding IPP agreements. These changes are expected to benefit both the public and industrial sectors, ultimately leading to a more balanced and cost-effective energy landscape for Pakistan.
