ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari has said that the government is focusing on reforming Pakistan’s power sector by operationalizing a competitive electricity market, privatizing distribution companies (DISCOs) and addressing key challenges such as circular debt.
Speaking at the Pakistan Business Council’s Dialogue on the Economy, he said the privatization of electricity distribution is underway, marking a transformative shift in the country’s energy sector.
By 2025, the government will no longer be involved in the electricity trade, enabling consumers and power companies to negotiate directly for affordable electricity, he explained.
The minister highlighted the government’s commitment to reducing electricity taxes on the public while promoting eco-friendly energy solutions. He mentioned the introduction of the National Electric Vehicle (EV) Policy, which aims to encourage the adoption of electric vehicles. As part of the initiative, tariffs at electric charging stations have been significantly reduced to make EVs more accessible.
To minimize reliance on imported coal, he said, Chinese companies operating coal-fired power plants in Pakistan will transition to using locally mined coal from the Thar region. This shift is expected to lower import costs and promote the use of domestic resources, he added.
The minister said the government is currently working on revising agreements with all Independent Power Producers (IPPs). He added that the next step would be to renegotiate contracts with government-owned IPPs.
He said, that the government has finalized Service Level Agreements (SLAs) for the power sector, aiming to enhance operational efficiency and ensure better service delivery.
He said that uniform tariffs will no longer be sustainable post-privatization, and new service-level agreements have been introduced for the power sector. Additionally, industrial estates and economic zones will now manage their distribution systems.
Leghari reaffirmed the government’s commitment to reducing circular debt and ensuring stability in the energy sector.
He said that efforts to lower electricity costs and promote renewable energy remain top priorities. The minister said that December witnessed a 7 percent increase in power demand, attributed to affordable energy initiatives introduced by the government.
Highlighting the importance of the energy sector for economic stability, Leghari reiterated the government’s resolve to sell surplus power to prevent wastage. “Our focus is on fostering a sustainable, efficient, and consumer-friendly energy sector,” he said.
