Govt plans to reduce electricity prices by Rs6-8 per unit

Islamabad: The federal government is working on reducing the electricity price in the next two months.

According to Power Division officials, the federal government is working to reduce the price of electricity by Rs6 to 8 per unit in the next two months. Discussions are also ongoing with banks to secure loans of Rs1,300 billion for this purpose.

Officials mentioned that this loan will be taken at a fixed interest rate and for a specific term, and it will be used to eliminate the circular debt.

The officials further stated that the government has saved Rs700 billion in negotiations with IPPs (Independent Power Producers), has eliminated Rs300 billion in interest, and so far, agreements have been terminated with six IPPs. Additionally, talks with 25 IPPs have been held on a take-and-pay basis.

They also mentioned that talks with the task force of government power plants are ongoing. The aim is to reduce electricity prices by Rs6 to 8 per unit within two months through these efforts.

According to officials, the circular debt in the power sector is about Rs2,300 billion, which needs to be eliminated as soon as possible.