Govt plans surplus power auction to boost industry, create jobs

ISLAMABAD: Federal Minister for Power Owais Leghari announced Monday government’s plan to auction surplus electricity, aiming to stimulate industrial growth and generate new employment opportunities across Pakistan.

Leghari emphasised surplus electricity will be made available to industries through a competitive process, ensuring maximum economic benefits and boosting industrial sector.

This initiative reflects government’s commitment to driving industrial expansion and creating jobs, Leghari said during his remarks at a Pakistan business council event. “By allocating surplus power competitively, we aim to support economy and foster sustainable growth in key industrial sectors.”

The minister mentioned sweeping ongoing reforms in power sector are aimed at overhauling Pakistan’s energy sector, emphasising efforts to lower electricity costs, privatise distribution systems and promote renewable energy.

Speaking at a seminar here, Leghari said the government is committed to addressing circular debt crisis and revamping current electricity pricing structure, which he described as unsustainable. “The existing uniform tariff system cannot continue”, he said. “We are introducing measures to provide affordable power to the public while reducing the tax burden on consumers”. He said privatisation of electricity distribution system is underway, and that by end of 2025, government will no longer be responsible for purchasing or selling electricity. “Consumers and power companies will be able to directly negotiate and trade affordable electricity, benefiting both parties,” he explained.

Leghari urged Chinese companies operating coal-fired power plants in Pakistan to transition from imported coal to locally extracted coal from Thar region. Leghari noted a 7pc increase in power demand in December, attributing it to government-led energy initiatives.

Earlier, US Acting Ambassador in Pakistan Ms Natalie A Baker called on Sardar Awais Leghari.

The minister apprised the US diplomat about the recent reforms undertaken in power sector. The acting ambassador invited the minister for participation in Energy Security Dialogue being organised in Washington. Natalie A Baker said it is now quite obvious government is making serious efforts to reduce electricity tariff in the country. She assured working together to explore new vistas of cooperation in the energy sector.