Efforts are being made to reduce electricity prices, nation will hear good news soon, Owais Leghari
This impression is not correct, the electricity prices are high due to the contracts with IPPs, the government is persuading the IPPs for new terms. Federal Minister of Energy’s interview to Voice of America
Federal Energy Minister Owais Laghari has said that this perception is not correct, electricity prices are high due to contracts with IPPs, rent of power plants and loan repayments are making electricity expensive per unit, IPPs are lagging behind contracts. It cannot be removed, the reduction of electricity prices in Pakistan is possible only through reforms, with the reforms, the electricity prices in Pakistan will soon be similar to other countries in the region. In the next two months, the nation will hear good news on the issue of IPPs, they will not unilaterally terminate or change the contracts with IPPs, if IPPs invest in dollars, then dollars There is a country that borrows in dollars and repays in local currency, however, explaining their constraints, they are persuading them to new conditions and progress is being actively made in this regard.
The Minister of Energy says that the government cannot play bandwagon in this regard, but will work responsibly. As a result of reforms in the energy sector, electricity prices in Pakistan will soon be similar to other countries in the region. Not only is the cost of production high, but rent and loan repayments of power plants are making electricity expensive per unit, which is affecting the income of the common man and forcing people to spend their savings to pay electricity bills.
He said that during the visit to China, it was agreed that Chinese loans given to Pakistan in the energy sector should be re-profiled and Chinese companies operating power plants would use local coal instead of imported coal. Both these measures are being implemented after a consensus was reached with Chinese energy companies operating in Pakistan during the visit to China, 90 percent of dues to Chinese companies are being paid on time and only around 10 percent. Payments are being delayed, the balance of payments has also improved due to improvement in foreign exchange reserves and this problem will be resolved in the coming days.
