ISLAMABAD (PEN) :Federal Minister for Energy Sardar Awais Ahmad Khan Leghari revealed that the government has shared its comprehensive reform plans and energy vision with China’s National Energy Administration.
In a conversation, the minister spoke about the potential for long-term collaboration among various stakeholders. He emphasized a key focus of these discussions: the re-profiling of $8.5 to $9 billion in debt. This step is expected to lower electricity prices and boost demand, aiming to make energy more affordable for consumers.
The minister highlighted ongoing negotiations with Chinese bankers for possible investments in Pakistan’s power sector. One major part of the reform plan involves transitioning electricity generation from imported coal to locally sourced coal, which could drastically cut the cost of electricity. For instance, converting four coal plants, including the Jamshoro plant, could reduce the cost from around 24 rupees per unit to about 8 rupees per unit.
Additionally, efforts are underway to phase out outdated furnace oil plants, which could save approximately 80 billion rupees annually. Despite the challenges of rupee devaluation and high-interest rates impacting the power sector, the government remains committed to these reforms.
The minister’s vision aims to address financial challenges in the energy sector, hoping to create a more stable and affordable energy landscape for all Pakistanis. This comprehensive approach reflects a significant step towards improving both the efficiency and affordability of power in the country.
