ISLAMABAD: Prime Minister Shehbaz Sharif approved a new 10-year electricity plan, cutting planned purchases from 14,000 megawatts (MW) to about 7,000 MW, according to the power minister.
The change aims to reduce dependence on expensive long-term contracts and encourage market-based solutions, media reports said.
During a meeting to review the 2024–2034 Integrated Generation Capacity Expansion Plan (IGCEP), the prime minister emphasized lowering electricity costs and making energy reforms sustainable, a statement from his office said.
“We’ve reduced tariffs to help people and are now working on long-term energy reforms,” he said. He urged officials to complete key projects like the Diamer Bhasha Dam on time and stressed using the country’s water and power resources efficiently.
“Delays in energy projects are not acceptable,” he said, noting plans to create a free electricity market to boost competition and lower prices.
The prime minister was informed that the IGCEP was revised after a detailed review, making it more practical and suited to future needs.
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The updated plan, developed by the Ministry of Energy, includes competitive bidding for new power projects over the next decade. It removes costly projects totaling 7,967 MW, saving an estimated $17 billion (Rs4.743 trillion).
The plan prioritizes local resources like solar, nuclear, and hydropower over imported fuels, which will save foreign exchange. It also includes phasing out capacity payments to power producers.
PM Shehbaz commended Power Minister Sardar Awais Leghari and his team for their work, calling the savings a major achievement for Pakistan.
The meeting included ministers for economic affairs, information, petroleum, and senior officials. The power minister said the government aims to save Rs4.743 trillion and protect consumers from rising costs.
“We’ve canceled plans to buy 7,000 MW of electricity to reduce financial strain on households and businesses,” Leghari said.
He added that the government is moving away from direct power purchases and adopting a competitive market system for transparency and efficiency.
Leghari called the reforms more important than ongoing talks with Independent Power Producers (IPPs), focusing on public welfare and financial responsibility to stabilize Pakistan’s energy sector.
