Government attempting to lower electricity costs: Awais Leghari

Speaking to the media here, the energy minister stated, “We are working over the IPPs power generation and DISCOs power theft issues.”

The administration, he claimed, has also started discussions about the issue with Chinese businesses. After considering all relevant factors, he declared, “We will try to reduce power tariffs.”

The ministry of energy had earlier told the media that the National Energy Administration of China had received proposals from the government about reforms and energy policy.

Re-profiling of debt totaling $8.5 to $9 billion, according to Awais Leghari, was a significant component of these negotiations and is anticipated to lower electricity costs and boost demand for electricity.

He added, “For possible investments in Pakistan’s power sector, the finance minister and other officials have been in contact with Chinese bankers.”

He added that switching from imported to domestic coal in power plants might result in a considerable reduction in the price of electricity per unit. This is another important aspect of these reforms.

He said that in an effort to lower energy costs from about 24 rupees per unit to about 8 rupees per unit, conversion of four coal facilities, including the government-owned Jamshoro plant, to local coal was being examined.

A potential annual financial impact of around 80 billion rupees is associated with the ongoing efforts, as per policies from 1994 and 2002, to phase out aging furnace oil facilities. This was indicated by the Minister.

In particular, he mentioned capacity charges in the electricity industry and the difficulties caused by the depreciation of the rupee and high borrowing rates.