Govt cuts expensive power plans

January 19, 2026 (MLN): The government has abandoned the procurement of around 8,000 megawatts of high-cost electricity, a move expected to save the national exchequer approximately $17 billion.

This decision is part of ongoing power sector reforms aimed at improving efficiency, reducing losses, and providing relief to electricity consumers.

Under the reforms, losses in the power sector have declined from Rs586bn to Rs393bn, while circular debt dropped by Rs780bn in the last year.

Recoveries have also improved significantly, with an increase of Rs183bn, showing enhanced financial management and operational efficiency in power distribution companies, according to Radio Pakistan.

In addition to financial reforms, the government has provided substantial relief in electricity tariffs, reduced power rates by 20% nationally over the past two years, benefiting consumers across the country.

These steps are part of a broader plan to eventually bring electricity prices in line with international rates within the next 18 months.

Federal Minister for Power Sardar Awais Ahmed Khan Leghari emphasized that the government is absorbing the losses of power distribution companies instead of passing them on to consumers.

He expressed confidence that, under the leadership of Prime Minister Shehbaz Sharif, the ongoing reforms will ensure sustainable, affordable, and efficient energy supply while continuing to strengthen the sector’s financial health.

Copyright Mettis Link News