Pakistan sells scrap from idle power plants for Rs46.7bn

ISLAMABAD: Pakistan has completed the sale of scrap from 61 obsolete state-owned thermal power plants for Rs46.73 billion, slightly above the reserve price of Rs45.82 billion, in a move officials say will reduce financial burdens and help ease electricity bills for consumers.

The scrap came from old and non-functioning power generation plants that were draining billions of rupees every year. The official reserve price for the scrap from a total of 61 units was set at Rs45.82 billion by experts from the State Bank of Pakistan. The final sale brought in more than expected, officials said.

The Power Division said the sale, ordered by Prime Minister Shehbaz Sharif, was carried out in two phases. In the first phase, scrap from 31 power units was sold to private buyers for Rs8.48 billion, above the reserve price of Rs7.59 billion. In the second phase, scrap from 30 plants, including Jamshoro Block I and II, Guddu II, Sukkur, Quetta, Muzaffargarh Block I and II, and Faisalabad, fetched Rs38.26 billion, slightly higher than the reserve price of Rs38.22 billion. Contracts for both phases have been finalized with successful bidders, and payments have been secured.