In an effort to provide relief to consumers, Federal Energy Minister Sardar Awais Ahmed Khan Laghari announced a significant reduction in electricity prices as part of a special winter package. Prices are expected to drop by Rs 20 to Rs 30 per unit, a move aimed at promoting higher electricity usage during the colder months. Additionally, the government is working to implement a general reduction of Rs 8 to Rs 10 per unit.
Laghari outlined broader reforms within the power sector, emphasizing steps taken to lower production costs and enhance sustainability. The government has been actively renegotiating contracts with Independent Power Producers (IPPs), achieving significant savings. So far, discussions with five IPPs have resulted in a cost reduction of Rs 411 billion, with the revised agreements set to take effect soon. Further negotiations are anticipated to yield even greater savings.
He acknowledged the support of IPPs and the cooperation of various agencies, highlighting the role of Chief of Army Staff Syed Asim Munir in securing these agreements. The minister also revealed plans to modernize the transmission system and establish nationwide charging stations for electric vehicles, catering to growing demand and advancing green energy initiatives.
Additionally, the Cabinet has approved the creation of an independent electricity marketplace. This new institution will allow power companies to set prices independently, potentially reducing costs for consumers in the long term. Laghari expressed optimism, describing the ongoing reforms as “a new ray of light” for the development of Pakistan’s power sector.
