- PM Shehbaz affirms commitment to long-term reforms in power sector that ease the financial burden on the public
- Lauds Minister for Power, his team for saving Rs4,743b through revised energy roadmap
ISLAMABAD: Prime Minister Shehbaz Sharif has announced a plan to establish a free market for electricity generation in Pakistan in the near future to enhance competition, improve efficiency of power sector and further reduce tariffs.
“The establishment of a competitive electricity market will not only enable power to be supplied on a fair and efficient basis, but will also play a vital role in bringing down tariff for consumers,” PM Shehbaz said.
He was chairing a meeting in Islamabad on Thursday regarding the Integrated Generation Capacity Expansion Plan 2024-20234, focusing on sustainable reforms in the energy sector and lowering electricity tariffs.
The Prime Minister emphasized that delays in energy projects would no longer be tolerated. “A free market for electricity production would soon be established to enable a competitive and sustainable supply of power and additional reductions in electricity rates”, he stated.
Highlighting recent developments, the Prime Minister pointed to the recent cut of approximately Rs7.50 per unit in electricity prices and affirmed the government’s commitment to long-term reforms that ease the financial burden on the public.
During the meeting, the Prime Minister was briefed on ongoing reforms within the energy sector. The IGCEP was reassessed on his instructions, revealing several areas for improvement. It was revealed that a framework has been created to enable competitive bidding and electricity procurement at the lowest possible cost over the next decade.
The plan now excludes high-cost projects with a combined capacity of 7,967 megawatts. Additionally, completion timelines for remaining generation projects are being revised. These changes are expected to yield savings of around $17 billion.
Officials further informed the meeting that local and alternative energy sources—such as solar, nuclear, and hydropower—will be prioritised over imported fuels, a move that will conserve valuable foreign exchange reserves.
The government also plans to gradually phase out capacity payments to power producers, aligning with its broader cost-saving strategy.
Prime Minister Shehbaz praised Minister for Power Sardar Awais Ahmed Khan Leghari and his team for saving Rs4,743 billion through the revised energy roadmap, calling it a “historic achievement” in Pakistan’s power sector.
