Awais Leghari Announces Rs 1.2 Trillion Circular Debt Reduction Without Burdening Consumers, marking a major financial breakthrough in Pakistan’s energy sector. The Federal Minister for Energy revealed that, for the first time in the country’s history, the massive debt is being cleared without passing the cost onto electricity users.
Speaking at a press conference in Islamabad alongside the Finance Minister and Minister of State for IT, Awais Leghari stated that the government is gradually moving out of the business of electricity buying and selling to reform the power sector’s structure.
He said that, on the directives of the Prime Minister, electricity for industries has been made cheaper by Rs 16 per unit to boost productivity and competitiveness. Additionally, surplus electricity is being offered to consumers at a reduced rate of Rs 7.5 per unit, making energy more affordable for the public.
Leghari further shared that through negotiations with power plant owners, the government successfully prevented additional payments worth Rs 3.6 trillion that would have extended until 2058. He emphasized that the administration inherited an expensive power system, with a generation cost of Rs 9.97 per unit. The rising cost of electricity, he added, is largely due to the depreciation of the rupee and heavy capacity charges.
The minister affirmed that reforms are underway to stabilize the power sector, reduce inefficiencies, and ensure that future pricing remains fair and transparent for all consumers.
