PM orders relief in electricity prices, focus on solar project development

As the incumbent government makes efforts to tackle multi-prong challenges in the power sector, Prime Minister Shehbaz Sharif on Friday directed the authorities concerned to reduce power tariffs further and expedite the implementation process of the action plan for future power generation projects.

During a meeting on the country’s electricity plans, he underlined the importance of producing environmentally friendly and affordable energy. The meeting was attended by federal ministers and senior officials, who provided updates on the progress of ongoing hydropower projects.

To leverage Pakistan’s vast solar potential, the PM instructed the transition of existing electricity generation systems to solar energy. He also ordered the immediate closure of inefficient power plants that consume excessive fuel but deliver low output. 

He noted that shutting down these outdated plants would help save foreign exchange and reduce electricity costs for consumers. The premier called for swift action against officials obstructing power sector reforms and directed the modernization of the power transmission system to meet international standards. 

Additionally, he emphasized implementing advanced technology to ensure the efficient selection and transmission of low-cost electricity. The PM further instructed that reforms in the electricity transmission and distribution systems be completed within the specified timeline. He also reviewed progress on phasing out outdated power plants stressing the urgency of expediting measures to make the system more efficient and sustainable.

In a related development, the federal cabinet recently approved agreements with eight bagasse-based independent power producers (IPPs), including DW Unit I, RYK Mills, and Chiniot Power, a move expected to save Rs238 billion for the national exchequer. Earlier, the government terminated agreements with five old IPPs, achieving annual savings of Rs60 billion.

These efforts come in response to rising electricity costs and growing public pressure to reform the power sector which has burdened inflation-hit consumers with high energy bills.