Islamabad, December 28, 2024 – Minister for Power Sardar Awais Ahmed Khan Leghari highlighted transformative achievements in Pakistan’s power sector during a year-end review.
Speaking at a press briefing in Islamabad, Leghari emphasized the government’s commitment to reducing electricity costs, boosting industrial growth, and ensuring energy sustainability through bold reforms and innovative policies.
Leghari announced a substantial decrease in electricity tariffs, showcasing the sector’s progress in 2024. “The average price of electricity has dropped to PKR 44.04 per unit from PKR 48.70 per unit in June 2024, a reduction of PKR 4.66. Industrial electricity rates have declined even further, now standing at PKR 47.17 per unit compared to PKR 58.50 per unit, reflecting a decrease of PKR 11.33,” he stated.
During the review, Leghari outlined key reforms initiated over the past nine months. “We have successfully eliminated PKR 150 billion in cross-subsidies from the industrial sector. This critical step has revitalized industrial activity and created new job opportunities across the country,” he said.
Leghari also detailed ambitious plans to overhaul the transmission sector. He highlighted the trifurcation of the National Transmission and Dispatch Company (NTDC) into three entities: the National Grid Company of Pakistan, the Energy Infrastructure Development and Management Company, and the Independent System and Market Operator. These changes aim to ensure efficient, reliable transmission and a competitive electricity market.
Focusing on distribution, Leghari announced the government’s move toward privatization and concession models, supported by the appointment of independent boards for distribution companies. “Circular debt costs are being shifted to the national debt to ease the financial burden on consumers,” he explained.
In Balochistan, Leghari emphasized the solarization of agricultural tube wells. “We are investing PKR 55 billion to solarize 27,000 tube wells, with the federal government covering 70% of the cost. This initiative will revolutionize agriculture in Balochistan and promote green energy,” he said.
Discussing agreements with Independent Power Producers (IPPs), Leghari revealed that five agreements have been terminated, resulting in national savings of PKR 411 billion and annual savings of PKR 70 billion. Further negotiations with 16 IPPs are underway, expected to save PKR 481 billion.
Leghari also introduced the Bijli Sahulat Package, which offers special tariffs for households and industries. Domestic consumers will save up to PKR 26 per unit, while industrial users could save between PKR 5.72 and PKR 15.05 per unit.
Looking ahead, Leghari announced plans for an Electric Vehicle (EV) policy to reduce reliance on imported fuels and promote local manufacturing. “This policy will revolutionize Pakistan’s transport sector by lowering greenhouse gas emissions and creating new jobs,” he added.
Despite ongoing challenges, Leghari reaffirmed his ministry’s commitment to delivering affordable, sustainable, and reliable energy. “These reforms will drive economic growth and lower electricity costs, paving the way for a prosperous Pakistan,” he concluded.