Govt plans to cut electricity tariff by Rs 10–12 per unit

Federal Minister for Power Sardar Awais Ahmad Leghari has unveiled plans to reduce electricity tariffs by Rs 10–12 per unit after finalizing discussions with the IMF on captive power plants.

Speaking at the National Assembly’s Standing Committee on Energy, he shared the government's efforts to cancel high-cost electricity agreements, deregulate the energy market, and revise Independent Power Producer (IPP) contracts. Agreements for 5 IPPs have been terminated, and revisions for 8 bagasse-based IPPs are expected to save Rs 6–6.50 per unit.

Leghari assured consumers that inefficiencies in the power sector are being addressed and tariff reductions are imminent. The government has already solarized 70% of tubewells and lowered industrial electricity rates.

At the 4th International Hydropower Conference, Leghari highlighted significant progress in reducing losses by power distribution companies, dropping from Rs 223 billion in 2023 to Rs 170 billion in 2024. He also emphasized the need for competitive procurement and criticized the uniform tariff system for inefficiencies.

The government is reviewing large projects like the Diamer-Bhasha Dam and promoting solar energy expansion, expecting an additional 10,000–12,000 MW under net metering. Leghari stressed the importance of making tough decisions to reform Pakistan’s energy sector and reduce financial burdens on consumers.