ISLAMABAD – Pakistani government is considering to cut electricity rates amid protests in the country as people are spending more than of their hard earned money on inflated power bills.
Amid the growing anger among masses, the government is considering making Rs. 4 trillion lump sum payment to Independent Power Producers (IPPs), per reports.
It has been reported that proposed strategy from the Ministries of Finance and Energy suggests consolidating and paying in advance the capacity payments that are due over the next 3-5 years. This upfront payment is expected to cut power tariffs by Rs5 per unit.
The government is making efforts to ease financial strain on IPPs and address issues related to revolving credit by pooling the necessary funds for a one-time payment.
In this regard, PM Shehbaz Sharif has been briefed about the proposal, but no final decision has been made as of yet. Officials from both the Finance and Energy ministries have been working together over the past week to develop an effective plan to reduce electricity bills promptly.
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