Agreement revisions with govt-owned IPPs in next phase: Leghari

Pakistan Energy Minister (Power Division) Sardar Awais Leghari on Tuesday said the agreements with the independent power producers (IPPs) were being revised to “ensure transparency and sustainability” and similar revisions would be made with the government-owned IPPs in the next phase.

The minister said this while addressing an event in Islamabad, according to a statement shared by the Ministry of Energy (Power Division).

“Agreements with independent power producers are being revised to ensure transparency and sustainability, and similar revisions will be made with government-owned IPPs in the next phase,” Leghari was quoted as saying in the statement.

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During his speech, the minister mentioned reforms in the energy sector, including his government’s measures aimed at reducing electricity tariffs, eliminating circular debt, and addressing inefficiencies in the current pricing system, which he described as unsustainable.

The government will cease overseeing electricity trade by 2025, he said.

“Instead, consumers and power companies will directly negotiate electricity purchases, fostering competition and benefiting all stakeholders.”

He further informed that the government plans to auction surplus electricity in the country.

“This surplus electricity will be provided to the industries.”

The initiative, as per the Power minister, aims to stimulate industrial growth and create new employment opportunities across Pakistan.

He assured that surplus electricity would be made available competitively to ensure maximum benefit for the economy and the industrial sector.

Leghari also apprised that industrial estates and economic zones would soon have the autonomy to manage their own power distribution systems.

“This initiative will curtail inefficiencies and promote industrial activity,” he said.

The minister further informed that privatisation of electricity distribution companies (discos) was also underway, and efforts were being made to reduce the tax burden on electricity consumers.

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Discussing coal-based power plants operated by Chinese companies, the minister said the plants would transition from imported coal to locally mined coal from the Thar region.

“This shift will reduce import costs while utilising domestic resources effectively, supporting the local economy and promoting energy self-reliance.”

The minister also shed light on recently discussed National Electric Vehicle (NEV) Policy, which aims to encourage the adoption of electric vehicles across the country.

He said the electricity tariffs for EV charging stations were reduced to make electric vehicles more affordable and accessible for the public.

“This step aligns with the government’s vision of promoting sustainable energy solutions and reducing environmental impact,” the minister informed.