ISLAMABAD, Aug 04 (APP):Federal Minister for Power Sardar Awais Ahmad Khan Leghari has said that limitations arising from Pakistan's IMF programme are preventing the government from introducing a flexible, market based electricity tariff system that could lower power costs, encourage battery storage and accelerate the country's clean energy transition. Speaking during an interactive session at an international renewable energy conference, the minister said the government had been engaging with the …
IMF restrictions blocking cheaper daytime electricity: Leghari
ISLAMABAD, Aug 04 (APP):Federal Minister for Power Sardar Awais Ahmad Khan Leghari has said that limitations arising from Pakistan’s IMF programme are preventing the government from introducing a flexible, market based electricity tariff system that could lower power costs, encourage battery storage and accelerate the country’s clean energy transition.
Speaking during an interactive session at an international renewable energy conference, the minister said the government had been engaging with the International Monetary Fund over the past several months to introduce a time of use tariff, allowing electricity prices to reflect the actual cost of power generation during different hours of the day.
Leghari said utilities in countries such as Australia have the authority to offer cheaper electricity during periods of surplus generation, particularly in daylight hours when renewable energy output is high.
However, he said Pakistan has been unable to implement a similar mechanism because of restrictions linked to the IMF programme.
He argued that introducing electricity at a marginal daytime cost of around Rs6 per unit would encourage consumers to invest in battery storage, store surplus renewable energy and use it during expensive evening peak hours, thereby reducing pressure on the national grid.
The minister maintained that the proposed tariff reform would have no fiscal implications for the government and could significantly improve grid efficiency by flattening demand peaks while promoting greater use of renewable energy.
Leghari also stressed that Pakistan requires substantial investment in the digitisation of its electricity network, including smart metering and real time monitoring of electricity flows, to support modern tariff mechanisms and better integrate distributed renewable energy.
Calling for greater international support, the minister said Pakistan had witnessed a remarkable people led solar revolution despite contributing only a small share of global greenhouse gas emissions.
Minister regretted that the international community had neither adequately acknowledged the country’s renewable energy transition nor extended meaningful green financing to modernise its electricity infrastructure.
Sardar said access to concessional financing for grid upgrades and tariff reforms would help reduce electricity costs for consumers and strengthen Pakistan’s long term energy security while accelerating the transition to cleaner sources of power.
