Prime Minister Shehbaz Sharif on Friday directed authorities to further reduce power tariffs and accelerate the implementation of action plans for future power generation projects.
During a meeting in Islamabad to assess and discuss the country’s future electricity and power strategies, the prime minister emphasized prioritizing low-cost, locally resourced-power projects. He highlighted that such projects produce environmentally friendly and affordable electricity.
PM Shehbaz also instructed that the current electricity generation capacity be transitioned to solar energy. Officials briefed the prime minister on the progress of ongoing hydropower projects and the phased closure of inefficient power plants that consume excessive fuel while generating less electricity.
He ordered the immediate shutdown of these outdated plants, stating that their closure would not only save valuable foreign exchange but also reduce electricity costs for consumers.
The premier further directed swift action against officials obstructing power sector reforms and called for accelerating upgrades to the electricity transmission system.
“The power transmission system should be upgraded according to international standards,” the prime minister said, stressing the need for a modern, technology-based system for selecting and transmitting low-cost electricity.
He also instructed that all measures for power sector reforms be completed within the designated timeline.
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Federal ministers Ahad Cheema, Awais Leghari, Dr. Musadik Malik, Minister of State Ali Pervaiz Malik, and other senior officials attended the meeting.
Today’s session followed the federal government’s approval earlier this week of settlement agreements with eight independent power producers (IPPs) running on bagasse. This move is aimed at reducing electricity tariffs and saving approximately Rs240 billion for the national exchequer.
The cabinet meeting approved the recommendations made by the Ministry of Energy’s power division. The power plants agreeing to revised production costs include DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Industries, Thal Industries, and Chinar Industries.
Following the agreements, the Central Power Purchasing Agency will seek approval from the National Electric Power Regulatory Authority (NEPRA) for tariff adjustments.
A press release from the Prime Minister’s Office stated that the agreements are expected to lower electricity prices for consumers and provide an estimated Rs238 billion in relief to the national exchequer.
