ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif said on Sunday he would “soon” announce a comprehensive package providing relief to the masses in terms of electricity prices, state-run media reported.
Pakistan has aggressively pursued reforms in its energy sector, which has long struggled with financial strain due to circular debt, power theft and transmission losses. These problems have led to blackouts and high electricity costs in the country.
Sharif chaired a meeting in Islamabad to review matters related to the Power Division on Sunday, state broadcaster Radio Pakistan reported.
“Prime Minister Shehbaz Sharif says a comprehensive package will be announced soon to provide relief to the public in electricity costs,” the state broadcaster said.
Sharif said his government would be able to provide more relief to the people in prices of electricity due to its recent power reforms.
He directed authorities to expedite the process of privatizing power distribution companies, urging them to resolve legal or other matters relating to the liquidation of power generation companies.
The Pakistani premier said promoting renewable energy was a “priority” of his government, clarifying that there is no change in the government’s policy on solar energy.
The clarification comes as Pakistan’s Economic Coordination Committee (ECC) earlier this month revised the buyback rate for solar net-metering electricity from Rs27 per unit to Rs10 per unit, saying the move was intended to ease the burden on grid consumers.
Pakistan has sought to ease fiscal pressure aggressively in recent months by undertaking energy reforms that reduce tariffs and slash capacity payments to independent power producers (IPPs).
The federal cabinet approved a plan in January to renegotiate agreements with 14 IPPs in its bid to lower electricity costs and address the country’s mounting circular debt.
