Pakistan's Power Sector Sees Significant Reforms, Savings of Rs411 Billion

In a major overhaul of the power sector, the government has achieved significant reforms, resulting in a substantial decrease in the average price of electricity. The average price has dropped to Rs44.04 per unit from Rs48.70 per unit, with the industrial tariff decreasing to Rs47.17 per unit from Rs58.50. The annual savings of Rs70 billion and national savings of Rs411 billion from terminated IPP agreements are a major accomplishment. The government has also shifted the circular debt costs from electricity bills to national debt, eliminating Rs150 billion in cross-subsidies from the industrial sector. Furthermore, the transmission sector has undergone upgrades, including the bifurcation of the National Transmission and Despatch Company. Additionally, the solarisation of 27,000 tube wells in Balochistan at a cost of Rs55 billion is a notable initiative. These reforms are expected to have a positive impact on the power sector and the economy as a whole.