ISLAMABAD: Pakistan’s Energy Minister Sardar Awais Leghari said on Wednesday the government was carrying out reforms to ensure the next government would not have to purchase electricity from power producers, as the country tries to make its energy sector more efficient.
Pakistan faces significant electricity challenges including power outages, high transmission losses, dependence on imported fuels, limited renewable energy sources and a massive circular debt. The incumbent administration is striving to address these issues by modernizing grids and privatizing the distribution companies.
Among these reforms are measures that would allow private consumers to buy electricity directly from producers instead of relying solely on the national grid.
“The energy ministry is currently undertaking major reforms,” the minister was quoted as saying in an official statement while addressing the Senate Standing Committee on Power. “We are undertaking reforms through which the next government will not have to buy electricity.”
He announced to privatize the electricity distribution companies of Islamabad, Gujranwala, Faisalabad, Lahore and Multan. Leghari said taking distribution companies out of the ministry’s jurisdiction was among the major reforms being undertaken.
He noted that advanced net metering would provide reliable data on electricity distribution while promising relief to the people from high power tariffs.
The government imposed an additional burden of more than Rs700 billion on electricity consumers during the current fiscal year by jacking up the average national tariff by around Rs5.72 per unit.
The government approved the tariff to strengthen the country’s position in securing a fresh financial bailout from the International Monetary Fund (IMF), as it tries to come out of a macroeconomic crisis.
