Govt proposes reform plans, energy vision to China
Business
Debt reprofiling, local coal conversion, minister outlines energy reforms
ISLAMABAD (APP) - Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari on Sunday said that the government has proposed its reform plans and energy vision to the National Energy Administration of China.
In an interview with a private news channel, the minister mentioned discussions on the possibility of long-term cooperation among all stakeholders.
Minister highlighted that one important aspect of these talks involved the re-profiling of debt amounting to $8.5 to $9 billion, which is expected to reduce electricity prices and increase demand for electricity.
He further stated that the finance minister and other officials have engaged with Chinese bankers for potential investments in Pakistan’s power sector.
Another key component of these reforms, he said, involves converting electricity generation plants from imported coal to local coal, which could significantly lower the cost per unit of electricity.
He noted that four coal plants, including the government-owned Jamshoro plant, were being considered for conversion to local coal, aiming to reduce electricity costs from approximately 24 rupees per unit to around 8 rupees per unit.
The minister also mentioned ongoing efforts to phase out older furnace oil plants, under policies from 1994 and 2002, which could have an annual financial impact of around 80 billion rupees.
He acknowledged the challenges posed by the devaluation of the rupee and high-interest rates, particularly concerning capacity charges in the power sector.
Minister emphasized the government’s commitment to power sector reforms and expressed confidence that these measures would address ongoing challenges and stabilize the financial structure of the sector.
