Govt will save as much as $17 billion by abandoning procurement of ‘expensive’ electricity

ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari said the government, acting purely on merit, has abandoned the procurement of around 8,000 megawatts of expensive electricity, a decision expected to save nearly USD17 billion.

Addressing a news conference here on Sunday, the Minister said the losses incurred by power distribution companies are borne by the federal government instead of being passed on to consumers.

He said that the government is implementing comprehensive power-sector reforms, resulting in a significant increase in recovery and a reduction in losses and circular debt.

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He said that losses were reduced from Rs 586 billion to Rs 393 billion, while circular debt declined by Rs 780 billion last year. He further said recoveries improved by Rs 183 billion.

Leghari said there has been an improvement of Rs 183 billion in the recovery.

Speaking about relief in electricity prices, the Minister said that power tariffs have been reduced by 20 percent at the national level in last two years.

Expressing confidence, Sardar Awais Ahmed Khan Leghari said electricity prices would be brought at par with international rates within the next 18 months under the leadership of Prime Minister Shehbaz Sharif.

Copyright Business Recorder, 2026