Reforms in the power sector are under progress as a number of IPP contracts expire.

In order to lower electricity costs and improve availability for consumers, the federal government has started a number of extensive reforms in the power industry under the direction of the National Task Force.

The task team is carrying out important actions for the public’s benefit, including examining and ending out-of-date contracts with specific Independent Power Producers (IPPs), Power Minister Owais Leghari stressed.

Leghari emphasized that these changes are intended to reduce government expenditures as well as electricity costs.

The government is also working to improve the energy infrastructure and has started the process of privatizing distribution firms. With the introduction of a new power market structure, consumers will have more options when it comes to buying electricity.

Revolving debt in the power sector has increased to $9.5 billion, highlighting how urgent these measures are. The average man will eventually gain from the reforms, according to economic experts, as they would lower electricity prices and significantly boost the economy.

Federal Minister for Energy Owais Leghari is the chair of the task force for structural reforms in the power sector, which Prime Minister Shahbaz Sharif established.

NEPRA, CPPA, PPIB, SECP, army officials, and representatives from other sectors make up the task team. Within a month, it must present recommendations to the prime minister that prioritize cutting capacity payments to IPPs and resolving other crucial concerns to guarantee the power industry’s financial viability.