Federal Minister for Energy Sardar Owais Ahmed Leghari has promised the nation that electricity will become cheaper before next year's summer.

He said that in the next four years, the government had to pull the people out of the problems plaguing the electricity sector, while after discussions with independent power producers, Rs638 billion had been saved.

Addressing a press conference in Islamabad, Owais Leghari said that if the Pakistan Tehreek-e-Insaf (PTI) government's formulae were followed, the people would end up paying additional electricity prices for the next 10 years.

"We have to get the people out of the electricity sector's problems in the next four years. Former prime minister Imran Khan saved the IPPs from forensic audit," he added. 

He said that in five to six months, the price of electricity per unit had been reduced and the shortcomings in the electricity transmission system removed. He added that the government had succeeded in halting the increase in circular debt, overbilling had started to decrease and will be eventually eliminated.

The minister said that an independent power purchase system had been introduced while cross-subsidies worth Rs150 billion in the power sector had been abolished.

"We are bringing innovation to the power transmission system. The purchase and sale of power will be the responsibility of a private company, not the government. The price of electricity has been reduced from Rs48.70 to Rs44.4, while electricity for the industrial sector has been reduced from Rs58.17 to Rs47," he recalled. 

Leghari said losses of power companies had reduced and would be brought down to zero, adding that electricity would be made cheaper by reducing capacity payments. Talks were underway with 16 more IPPs, as so far, Rs638 billion had been saved after talks with IPPs, he said, adding that the government aimed to take this saving to Rs1,000 billion.

He also said that talks had started with Chinese IPPs, claiming that electricity prices would be reduced further before next summer. He added that the electricity price of charging stations for motorcycles and rickshaws would be reduced.

The minister further said that Pakistan would be turned into the cheapest electricity provider in the region, as a power sector regulatory mechanism was being considered. He further said that by the end of next year, three electricity distribution companies would be privatised and solar electricity tariffs reduced.