ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari has said the government has abandoned the procurement of around 8,000 megawatts of expensive electricity purely on merit, a move expected to save nearly USD 17 billion.
Addressing a news conference on Sunday, the minister said losses of power distribution companies are being absorbed by the federal government instead of being passed on to consumers. He added that wide-ranging power sector reforms are underway, leading to improved recoveries and a significant reduction in losses and circular debt.
According to Leghari, overall losses have been reduced from Rs 586 billion to Rs 393 billion, while circular debt declined by Rs 780 billion last year. He also noted an improvement of Rs 183 billion in recoveries.
Highlighting consumer relief, the minister said electricity tariffs have been reduced by 20 percent nationwide over the past two years. Expressing optimism, he stated that under the leadership of Prime Minister Shehbaz Sharif, electricity prices would be brought closer to international levels within the next 18 months.
Story by Naveed Butt
