PM Approves New Power Plan, Promises Rs 4,743 Bln In Savings: Sardar Awais

ISLAMABAD, (UrduPoint / Pakistan Point News - 1st May, 2025) Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari on Thursday said that the Prime Minister has approved a fresh 10-year power plan that aims to cut costs and bring financial relief to the public.

He said that the new strategy will save the country Rs4,743 billion, compared to the previous policy.

Leghari explained that if the old system had continued, power consumers would have faced a heavy financial load. The key step in the new plan is the cancellation of expensive power projects with a combined capacity of 7,000 megawatts. The minister said this move alone has reduced pressure on both the national grid and consumers’ pockets.

"The expensive power plants have been dismantled to give people some relief," said Leghari. He further clarified that the government no longer purchases electricity through the previous mechanisms that added costs to the system.

The minister confirmed that the outdated "single-buyer model" and the "cost-plus tariff" approach, which determined electricity prices based on the cost of production plus a profit margin, have now ended.

New agreements for power purchases will save an additional Rs2,790 billion in the years ahead.

Leghari highlighted that these reforms mark a shift in the way Pakistan plans and manages its power sector. He emphasized that future planning will be based on solid principles to avoid the purchase of costly electricity. The goal is to ensure that power generation aligns with actual needs and remains affordable for both the government and the public.

The 10-year plan is expected to focus on cleaner, cheaper, and more reliable energy sources.

Leghari maintained that the government’s priority is to stabilize the energy sector and prevent further financial strain on consumers. By scrapping high-cost projects and changing purchasing models, authorities aim to reduce future power tariffs and bring long-term economic benefits.

APP/tsw