ISLAMABAD: Federal Minister for Energy, Sardar Awais Khan Leghari, acknowledged the PML-N-led government’s commitment to soon deliver “good news” regarding independent power producers (IPPs).
“We had quietly started work on the IPPs, but the news was leaked from the ministry,” Leghari said while addressing the National Youth Convention in Islamabad.
He also announced plans to establish new power plants to tackle the issue of load-shedding in the country. The minister stated that a task force had been formed, including officials from law enforcement agencies.
The minister admitted that electricity tariffs in Pakistan are the highest in the region but emphasized that subsidies are provided to the poor.
“No doubt, we’re offering the most expensive electricity in the region, but poor consumers are receiving it at subsidized rates, with others bearing the burden,” the minister explained.
Due to the high cost of electricity, the minister acknowledged that industries across the country have been shutting down. However, he added that the government is now providing electricity to industries at lower rates, covering the additional costs.
Leghari also urged the public to endure “two hours of load-shedding,” which, according to him, could result in significant savings of up to Rs50 billion.
“Another way to save electricity is by switching to energy-efficient fans,” he said, adding that the government has devised a new power plan to eliminate load-shedding.
The minister further explained that the cost of electricity, which was previously Rs10 per unit, has risen due to the depreciation of the local currency against the US dollar. “The current average electricity cost stands at Rs44 per unit,” he added.
On July 15, the Shehbaz Sharif-led government increased the base tariff for domestic consumers to up to Rs48.84 per unit.
According to the notification issued by the Power Division, this increase applies to consumers in Karachi as well. However, it exempts those using up to 200 units per month, who will not be subject to the hike for the next three months.
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