Prime Minister Shehbaz Sharif has announced plans to establish a free market for the generation of electricity in Pakistan in the near future, aiming to further reduce tariffs and improve competition and improve efficiency in the electricity sector.
“The establishment of a competitive electricity market will not only allow energy to be supplied fairly and efficiently, but also play a vital role in reducing prices for consumers,” said Prime Minister Shehbaz.
He was presiding over a meeting in Islamabad on Thursday with respect to the integrated generation capacity expansion plan 2024-20234, focusing on sustainable reforms in the energy sector and reducing electric tariffs.
During the meeting, the prime minister emphasized that delays in energy projects would no longer be tolerated. He announced that a free market for electricity production in the country would soon be established, which allows a competitive and sustainable energy supply. This reform is expected to lead to additional reductions in electricity rates.
Highlighting recent developments, the prime minister pointed out the recent cut of approximately RS. 7.50 per unit in electricity prices and affirmed the government’s commitment to the long -term reforms that relieve financial burden on the public.
The authorities informed the Prime Minister on current reforms within the energy sector. The IGCEP was reevaluated in its instructions, revealing several areas of improvement. It was revealed that a framework has been created to allow competitive tender and the acquisition of electricity at the lowest possible cost during the next decade.
The plan now excludes high -cost projects with a combined capacity of 7,967 megawatts. In addition, the completion deadlines for the remaining generation projects are being reviewed. These changes are expected to generate savings of around $ 17 billion.
The officials also reported the meeting that local and alternative energy sources, such as solar, nuclear and hydroelectric, will be prioritized over imported fuels, a measure that will keep valuable currency reserves.
The government also plans to gradually eliminate capacity payments to energy producers, aligning with their broader cost savings strategy.
Prime Minister Shehbaz praised the Minister of Power Sardar Awais Ahmed Khan Leghari and his team for saving RS. 4,743 billion through the revised energy roadmap, calling it a “historical achievement” in the electrical sector of Pakistan.
