Minister of Power Omar Ayub Khan has said that the reduction in the cost of power generation was part of the government’s reform agenda, and signing an agreement with the Independent Power Producers (IPPs) was a step towards its fulfillment.
The minister said that the power sector reforms will be unveiled in the next three weeks.
The accord will not only help cut the power generation cost but also improve the electricity distribution system in the country, he said while addressing a press conference with Special Assistant of the Prime Minister on Power Shahzad Qasim.
The minister said the power sector reforms, with improvement in the electricity distribution system, would benefit both the common consumers and industries, besides decreasing the circular debt.
The negotiations with the IPPs, he said, were held in a congenial environment. The power accords of 1994, 2002, and 2006 were reviewed with the IPPs. The agreement was signed in the larger national interest, which was also inked by the foreign sponsors. It will also promote the industrial sector, he added.
Tariff of the state-owned power producers will also be reviewed.
He said the government is going to introduce reforms in the energy sector, which would enable Pakistan to generate 70 percent of its energy through indigenous resources by 2030. The past governments had changed the energy mix where 70 percent of energy was being generated through expensive imported fuel.
Omar Ayub said tube-wells in Balochistan cost Rs. 44 billion annually, which was not being recovered. The total development budget of Balochistan stood at Rs. 80 billion and the amount could be spent on the welfare of the people, he added.