Federal Minister for Power Awais Ahmad Khan Leghari announced on Thursday that the government is working to reduce electricity tariffs by Rs12 per unit.
This significant reduction was discussed during a parliamentary session, where Leghari briefed the National Assembly’s Standing Committee on Power about ongoing efforts.
The government is considering eight to nine factors before implementing the tariff cuts. Key measures include revising contracts with independent power producers (IPPs) and state-owned power generators to secure favorable terms.
Leghari expressed optimism about finalizing these deals by the end of the month. Additionally, talks with the International Monetary Fund (IMF) regarding captive power plants are nearing completion.
Recently, the government already reduced electricity tariffs by Rs4 per unit for domestic consumers. By renegotiating Power Purchase Agreements (PPAs) with IPPs, it saved Rs1.1 trillion.
Further savings are expected as the government reevaluates PPAs for 16 more IPPs and reviews the return on equity for state-owned power plants. Adjustments to the operations of eight bagasse-based power plants are also in progress.
This initiative reflects the government’s commitment to lowering energy costs for citizens and ensuring more efficient energy management nationwide.
