Govt Pays Rs170B Subsidy To Ensure Uniform Electricity Tariff For Consumers In Karachi

KARACHI, (UrduPoint / Pakistan Point News - 25th Sep, 2024) Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Wednesday said that Rs 170 billion subsidy is being paid by the government of Pakistan to enable the electricity consumers in Karachi get electricity at par with the prices in other parts of the country.

He expressed these views while talking to newsmen after attending the “Power Reforms Roundtable” organized at the Institute of business Administration (IBA) main campus.

Earlier, the Federal Minister for Power along with the Executive Director IBA Karachi Dr. S. Akbar Zaidi attended the “Power Reforms Roundtable” at the IBA main campus here.

In his media talk, Sardar Awais Ahmed Khan Leghari said that the forensic audit of the Independent Power Producers (IPPs) would be carried out if it is required and expressed hope that it would not be needed.

He said that we will make all-out efforts to achieve the target of Rs 10 to 12 per unit reduction in the electricity cost in the next one-and-a-half year, in case all reforms are implemented including re-profiling of CPEC loans, review of IPPs contracts, settlement of transmission constraints, improving efficiency of distribution companies and broadening the tax net.

To a question, he said that we appreciate the Government of Punjab for providing subsidy in the electricity bills for August and September and its renewal or review would be the decision of the Punjab Government. The Federal Power Minister told another questioner that the K-electric is being regulator under its Regulator.

Sardar Awais Ahmed Khan Leghari said that there is a need for further improvement in the efficiency of the power regulatory bodies because the regulator has to watch the interests of the consumers and we as a government also need to further strengthen our regulatory bodies.

Earlier, in his keynote address to the participants of the “Power Reforms Roundtable”, the Federal Power Minister said seven out of ten power distribution bodies would be privatized very soon.

Sardar Awais Ahmed Khan Leghari said that we need to review the IPP contracts and it would be done with mutual consent. He told another questioner that the higher income group of the society is the beneficiary of the solar net metering. The Federal Power Minister said that we are the cleanest energy producers in the region and all Pakistanis should be proud of it.

Sardar Awais Ahmed Khan Leghari identified fault lines, and a clear road-map for reforms that can improve efficiency of the power sector, catalyzing industrial, and economic growth in the process.

The Minister clearly stated that structural reforms are multifaceted, and the results of the same would be apparent in a few months. The Power Division is actively working towards improving governance standards of distribution companies while pushing for a radical transformation of transmission infrastructure to improve efficiency, and reduce losses in the process, he added.

On the issue of surplus generation capacity, it was mentioned that plans are in place to stimulate industrial demand through various interventions, such that we can accelerate industrial, and economic growth in the process, he said.

He said that we are also going to announce the Electric Vehicles (EVs) Regulations in the next few days and highlighted that a policy that encourages the adoption of EVs will be announced soon, which will accelerate the adoption of EVs in the country, particularly two-wheelers, and three-wheelers.

Such an intervention will not just increase electricity demand, but also reduce household expenditure on transport, as well as significantly reduce import bill associated with fuel imports, he said.

It was also mentioned that Pakistan has one of the cleanest energy mixes in the world, with more than 55 percent of electricity being generated from clean sources, such as hydel, nuclear, and renewables. More importantly, the same would exceed 70 percent within a few years. Similarly, almost 75 percent of electricity generated in the country is through indigenous sources, and the same is expected to increase to more than 90 percent over the next few years.

The event ended on a positive note, with a clear focus on a reform agenda that will result in improved governance standards, and better efficiency in the generation, transmission, and distribution of electricity –resulting in lower prices of electricity, which can trigger industrial, and economic growth in the process.

Later, the Federal Minister for Power Sardar Awais Ahmed Khan Leghari was presented shield by the Executive Director IBA Karachi Dr S.Akbar Zaidi.