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Historic reform measures taken in nine months: Leghari


ISLAMABAD: Addressing a press conference on Saturday, Federal Minister of Energy, Awais Leghari stressed that the government has taken ‘historic reforms’ since it ascended to power and the roadblocks within the energy sector were readily removed within nine months.

“We are solving problems in the energy sector, and there has been a significant reduction in electricity prices since June,” Leghari said. He added that the government is accountable to the citizens and that reforms under Prime Minister Shehbaz Sharif would lead the country towards progress.

“The worst kind of political campaign was run against us in recent days but the PM has asked us to take steps for country’s improvement instead of engaging with the campaign and rebutting it,” Leghari stated.

He added that the Ministry of Energy is providing facilities to industries on priority basis.

On December 14, the federal government had taken another significant step in addressing high electricity costs by deciding to terminate agreements with an additional six Independent Power Producers (IPPs). 

Also read: No plans for imposing tax on solar net metering: Leghari

This move was expected to save the national exchequer another Rs300 billion. The federal cabinet had approved tariff revisions for eight IPPs based on recommendations from the Special Task Force on IPPs.

Earlier, a task force led by Leghari was formed to renegotiate terms with IPPs. The initial phase saw the voluntary cancellation of agreements with five IPPs, whose owners prioritized national interest over personal gain. 

The government ensured that the previous dues of these IPPs would be cleared, excluding any interest payments. Sharif had also expressed gratitude to the IPP owners for their cooperation, underscoring that the move would lead to reduced electricity prices for consumers.

Meanwhile, the PM also directed the authorities to further reduce electricity rates for consumers and expedite the implementation of future electricity generation strategy.

Referring to the energy mix, Sharif had said that hydropower projects are low-cost sources of electricity that provide environment-friendly and affordable electricity to consumers. He stressed that the existing power generation should also be converted to solar energy as environment-friendly and low-cost solar energy is being used to generate electricity worldwide. He pointed out that Pakistan is fortunate to have vast potential for solar energy.

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