The federal government has initiated a series of comprehensive reforms in the power sector under the guidance of the National Task Force aimed at reducing electricity prices and enhancing availability for consumers.
Power Minister Owais Leghari emphasized that the task force is implementing significant measures for the welfare of the public, including reviewing and terminating outdated contracts with certain Independent Power Producers (IPPs).
Leghari highlighted that these reforms are not only designed to cut electricity prices but also to minimize government spending.
Additionally, the government is focused on strengthening the energy infrastructure and has commenced the privatization process of distribution companies. A new power market structure is set to be introduced, allowing consumers greater flexibility in purchasing electricity.
The power sector's revolving debt has surged to $9.5 billion, underscoring the urgency for these reforms. Economic experts predict that the reforms will lead to reduced electricity prices and a substantial improvement in the economy, ultimately benefiting the common man.
Prime Minister Shahbaz Sharif has established the task force for structural reforms in the power sector, chaired by Federal Minister for Energy Owais Leghari.
The task force comprises representatives from various sectors, including army officials, NEPRA, CPPA, PPIB, and SECP. It is tasked with submitting recommendations to the Prime Minister within a month, focusing on reducing capacity payments to IPPs and addressing other critical issues to ensure the financial sustainability of the power sector.
