Prime Minister Shehbaz Sharif has announced its intention to establish a free market for electricity production in Pakistan in the near future, aimed at further reducing prices and improving competition and improving the efficiency of the energy sector.
“The establishment of a competitive electricity market will not only provide energy on a fair and effective basis, but it will also play a vital role in the drop in consumer prices,” said Prime Minister Shehbaz.
He chaired a meeting in Islamabad Thursday concerning the plan of expansion of the integrated production capacity 2024-20234, by focusing on sustainable reforms in the energy sector and by reducing electricity rates.
During the meeting, the Prime Minister stressed that delays in energy projects would no longer be tolerated. He announced that an electricity production market would soon be established in the country, allowing a competitive and lasting supply of energy. This reform, he noted, should lead to an additional reduction in electricity rates.
Stressing the recent developments, the Prime Minister underlined the recent reduction of approximately Rs. 7.50 per unit of electricity prices and affirmed the government’s commitment to long -term reforms that facilitate the financial burden of the public.
Officials informed the Prime Minister of Reforms underway in the energy sector. The Igcep has been reassessed on its instructions, revealing several areas to be improved. It has been revealed that an executive was created to allow competitive auctions and electricity purchases at the lowest possible cost during the next decade.
The plan now excludes high cost projects with a combined capacity of 7,967 megawatts. In addition, the completion times for the remaining production projects are being revised. These changes should lead to savings of about $ 17 billion.
Officials have also informed Reunion that local and alternative energy sources – such as solar, nuclear and hydroelectric energy – will be priority over imported fuels, a decision that will maintain precious exchange reserves.
The government also plans to gradually eliminate capacity payments from electricity producers, aligning with its wider saving strategy.
Prime Minister Shehbaz congratulated the Minister of Power Sardar Awais Ahmed Khan Leghari and his team for saving Rs. 4,743 billion by the revised energy roadmap, describing it as “historic realization” in the Pakistan electricity sector.
