Federal Minister for Power Awais Leghari informed the National Assembly that the government will stop purchasing electricity after March this year, following the approval of an independent electricity market.
During the session, Leghari described the move as a major milestone toward a competitive and efficient energy market, enabling consumers to purchase electricity from multiple suppliers. He stated this transition is expected to benefit the economy and meet the country’s rising electricity demands while managing costs effectively.
He revealed that revised agreements with 28 Independent Power Producers (IPPs) had resulted in savings of Rs145.7 billion for the national exchequer. “We have inaugurated an Independent Authority that will oversee the new electricity market. Starting in April, electricity will be offered at reduced rates—Rs11 less per unit for industries and Rs4 for other consumers,” he said.
To ensure accurate billing and customer satisfaction, advanced metering infrastructure is being rolled out in phases across all distribution companies (DISCOs), he said.
The minister further revealed plans for the privatization of power distribution companies where surplus electricity is available. “The auction process for these companies will be conducted transparently, with conditions for privatization to be finalized by the end of this month,” he added.
Leghari informed the National Assembly that no power distribution company (DISCO) was handed over to Inter-Services Intelligence (ISI), however special intelligence units comprising provincial officials, Federal Investigation Agency (FIA) and others were helping to reduce the losses and electricity theft.
Special units have been established to improve recoveries and combat power theft, which he noted had yielded positive results, he added.
Additionally, he clarified there are no plans to revisit the slab system but emphasized ongoing efforts to ease the financial burden on the public.
