In a bid to reduce electricity prices, Federal Minister for Energy Owais Leghari announced plans to retire costly power plants.
Speaking to the media in Islamabad after a meeting with MQM National Assembly members, he emphasized the government's commitment to lowering electricity costs across Pakistan.
The Minister highlighted the progress made in rescheduling energy sector debt with China, promising good news soon. He attributed the rise in capacity payments to the devaluation of the rupee, which has increased interest rates.
Addressing the issue of Independent Power Producers (IPPs), Leghari stated that the government is seriously working on reforms in the power sector. He acknowledged the complexities involved, including legal challenges, but assured that all issues are being thoroughly examined.
The minister also announced that the government plans to shift imported coal plants to local coal as part of their strategy. This move is expected to further reduce costs and reliance on imported resources. The Power Division issued a statement confirming that the MQM delegation had been briefed on the ongoing power sector reforms, which include retiring expensive power plants and converting coal plants to use local coal.
Criticizing Gohar Ijaz, Leghari remarked that Ijaz's approach to power sector reforms is impractical and unrealistic. He underscored that the fall in the rupee's value since 2018 and rising interest rates have contributed significantly to the increased capacity payments.
