The Public Accounts Committee (PAC) of Parliament was informed on Monday that capacity payments in the power sector rose sharply by 892 percent from Rs. 141 billion in 2015 to Rs. 1,400 billion in 2024, mainly due to the addition of new LNG and coal-fired power plants.
The PAC meeting reviewed audit objections related to the Power Division for the financial year 2023-2024.
Officials from the Central Power Purchasing Agency (CPPA) blamed the increased share of imported coal and a rise in the dollar’s value as key factors behind the escalating power costs.
PAC member Syed Naveed Qamar pointed out that the Power Division appeared to be blaming coal for the high cost of electricity.
CPPA officials responded that reliance on imported coal significantly contributed to the cost escalation.
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