ISLAMABAD: Federal Minister for Energy Awais Leghari on Monday said that the government trying utmost to reduce the electricity price.
“We are working over the IPPs power generation and DISCOs power theft issues,” talking to media here the energy minister said.
He said the government has also initiated talks with Chinese companies over the matter. “We will try to reduce power tariffs after keeping in view all concerned matters,” he said.
Earlier, talking to media the energy minister said that the government has proposed its reform plans and energy vision to the National Energy Administration of China.
Awais Leghari said that an important aspect of these talks involved the re-profiling of debt amounting to $8.5 to $9 billion, which is expected to reduce electricity prices and increase demand for electricity. He further stated that the finance minister and other officials have engaged with Chinese bankers for potential investments in Pakistan’s power sector.
Another key component of these reforms, he said, involves converting electricity generation plants from imported coal to local coal, which could significantly lower the cost per unit of electricity. He noted that four coal plants, including the government-owned Jamshoro plant, were being considered for conversion to local coal, aiming to reduce electricity costs from approximately 24 rupees per unit to around 8 rupees per unit.
The Minister also mentioned ongoing efforts to phase out older furnace oil plants, under policies from 1994 and 2002, which could have an annual financial impact of around 80 billion rupees.
He acknowledged the challenges posed by the devaluation of the rupee and high-interest rates, particularly concerning capacity charges in the power sector. –Agencies
