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PESHAWAR, Feb 12 (APP):Pakistan Business Forum (PBF) Wednesday lauded Prime Minister Shehbaz Sharif’s commitment to reduce electricity tariffs for both domestic and industrial consumers, saying the ongoing reforms in the power sector are showing positive outcomes.
Speaking to members of Nowshera Industrial Zone at Nowshera on Wednesday, PBF KP Chairman KP Ashfaq Paracha stated that renegotiations with independent power producers (IPPs) are helping bring down electricity costs, benefiting both consumers and the national budget.
He also emphasized the government’s resolve to intensify efforts against power theft to minimize losses within distribution companies.
Despite these initiatives, Paracha pointed out that several crucial reforms in the power sector remain stagnant. He added that Power Division has yet to implement over a dozen priority initiatives assigned by the prime minister.
Key areas of delay include the conversion of three Chinese coal-fired power plants – Sahiwal, Port Qasim, and Hub – to locally sourced Thar coal, as well as ensuring a consistent supply of Thar coal to the Lucky Power Plant and Jamshoro Power Plant. Additionally, the privatization process of government-run power generation companies (GENCOs), such as Nandipur and Guddu 747, has made limited progress, with the privatization deadline set for January 1, 2026.
Efforts to involve the private sector in electricity distribution have also seen sluggish progress and plans to privatize IESCO, GEPCO, and FESCO in the first phase, followed by LESCO, MEPCO, and HAZECO in the second phase, remain largely unfulfilled. Meanwhile, the long-term concession agreements for SEPCO, HESCO, and PESCO have seen minimal movement.
The provincial chief PBF further said other delayed initiatives include shifting captive power plants (CPPs) to the national grid, launching a competitive electricity market, and finalizing wheeling charges to facilitate business-to-business (B2B) electricity contracts.
Furthermore, the issue of unpaid electricity bills in the former Federally Administered Tribal Areas (FATA) remains unresolved, adding to the challenges faced by the sector.
With circular debt exceeding Rs 2.5 trillion, the delay in implementing critical power sector reforms continues to present financial challenges.
In light of these issues, the Pakistan Business Forum has urged authorities to accelerate the implementation of all reforms and projects within the established timelines, warning that further inefficiencies could undermine efforts to provide a stable and affordable electricity.