The Power Division has published its one-year performance report, detailing progress in electricity tariff reductions, the clearance of long-term liabilities, and reforms to reshape Pakistan’s power sector. The report also highlights a Rs780 billion reduction in circular debt, achieved without the need for new loans.
According to the report, the government has made significant strides in reducing electricity tariffs. Domestic consumer tariffs have been reduced by Rs8.35 per unit, while industrial users received a Rs16.68 per unit reduction. Flood-affected areas were granted full bill waivers and payment concessions. Additionally, farmers’ tube wells and households using up to 300 units benefitted from negative monthly fuel cost adjustments.
The government also introduced a three-year ‘Roshan Economy’ package for industrial and agricultural users, offering additional electricity at Rs22.98 per unit to support production and exports.
Tough negotiations with independent power producers (IPPs) have led to the removal of a projected Rs3.4 trillion financial burden on consumers and the national treasury. Furthermore, the closure of inefficient power plants eliminated a Rs7 billion salary burden from electricity bills. The government also cancelled 9,500 megawatts worth of future power projects, saving consumers from a potential Rs1 per unit tariff increase.
The Power Division also reported a record Rs780 billion reduction in circular debt without resorting to new loans. Other reforms included improvements in collection performance, the initiation of privatization for three power distribution companies, and the removal of the Rs35 PTV fee from electricity bills.
Additional initiatives in the report include a 44% reduction in electric vehicle charging tariffs, the launch of the ‘Apna Meter, Apni Reading’ app for consumer control over meter readings, and a new 118 helpline to combat discretionary practices. Competitive bidding also reduced the cost of smart meters by 40%, saving an estimated Rs100 billion annually.
The report also emphasises the development of power infrastructure in Gwadar, the merit-based recruitment of young professionals, and a 100-megawatt green energy project in Gilgit-Baltistan. Currently, Pakistan generates 55% of its electricity from clean sources, with a goal to increase that to 90% by 2034, positioning the country as a regional leader in green energy.
