{"id":56878,"date":"2024-07-03T12:04:16","date_gmt":"2024-07-03T12:04:16","guid":{"rendered":"https:\/\/english.saigonbiz.com.vn\/2024\/07\/03\/reforming-the-power-sector-in-pakistan\/"},"modified":"2024-07-03T12:04:16","modified_gmt":"2024-07-03T12:04:16","slug":"reforming-the-power-sector-in-pakistan","status":"publish","type":"post","link":"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/","title":{"rendered":"REFORMING THE POWER SECTOR IN PAKISTAN"},"content":{"rendered":"<div>\n<p><span class=\"legendSpanClass\"><span class=\"xn-location\">ISLAMABAD<\/span><\/span>, <span class=\"legendSpanClass\"><span class=\"xn-chron\">July 3, 2024<\/span><\/span> \/PRNewswire\/ &#8212;\u00a0<\/p>\n<p><b>REFORMING THE POWER SECTOR IN <span class=\"xn-location\">PAKISTAN<\/span><\/b><\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder5925\">\n<p style=\"TEXT-ALIGN: center; WIDTH: 100%\"><a href=\"https:\/\/mma.prnasia.com\/media2\/2453548\/Honorable_Minister_Power_Pakistan_Mr_Awais_Leghari.html\" target=\"_blank\" rel=\"nofollow noopener\"><img decoding=\"async\" src=\"https:\/\/mma.prnasia.com\/media2\/2453548\/Honorable_Minister_Power_Pakistan_Mr_Awais_Leghari.jpg?p=medium600\" title=\"Honorable Minister of Power Pakistan, Mr. Awais Leghari\" alt=\"Honorable Minister of Power Pakistan, Mr. Awais Leghari\"><\/a><br \/><span>Honorable Minister of Power Pakistan, Mr. Awais Leghari<\/span><\/p>\n<\/p><\/div>\n<p>The power sector in <span class=\"xn-location\">Pakistan<\/span> faces a myriad of serious and complex issues, ranging from bad governance to delays in decision-making and lack of economic growth. These challenges have led to inefficiencies that are embedded in the price of electricity, impacting household incomes and making export-oriented businesses uncompetitive.<\/p>\n<p><b>Addressing Inefficiencies and Rising Costs<\/b><\/p>\n<p>The continuous rise in electricity prices fuels inflation and becomes a political issue, especially during high consumption months from June to August. The government has initiated policies to decrease costs by using local fuel instead of imported fuel, which has helped reduce the electricity generation cost over the years.<\/p>\n<p><b>Tariff Rebasing and Social Protection<\/b><\/p>\n<p>Rebasing of the tariff, which takes place every June, determines the expected tariff for the next fiscal year. This year, after the new tariff determination, for the 16.8 million protected consumers (58% of all domestic consumers), the expected increase is less than 2% month-on-month. For non-protected consumers, the increase is an average of 9%. Importantly, as the economy improves, electricity tariffs are expected to decrease. By <span class=\"xn-chron\">January 2025<\/span>, an average reduction of 3% is anticipated compared to <span class=\"xn-chron\">June 2024<\/span>.<\/p>\n<p><b>Industrial Growth and Efficiency<\/b><\/p>\n<p>The government has reduced industrial tariffs to encourage increased production and employment. This support is crucial for catalyzing economic growth. The Ministry of Power is also working with the World Bank to privatize Distribution Companies (DISCOS) to improve operational efficiencies, reduce losses, and counter electricity theft. This privatization is expected to bring in investment and expertise, enhancing the power sector&#8217;s performance.<\/p>\n<p><b>Improving the Energy Mix and Reducing Costs<\/b><\/p>\n<p><span class=\"xn-location\">Pakistan&#8217;s<\/span> energy mix includes more than half of its electricity generation from low-carbon sources such as hydel, nuclear, and renewables. The cost of generating electricity from these sources is significantly lower than from imported fuels. For instance, the fuel cost of electricity generation is <span class=\"xn-money\">Rs 10.9<\/span> per kWh, which reduces to <span class=\"xn-money\">Rs 9<\/span> per kWh during summer due to hydel power. However, capacity costs have increased to <span class=\"xn-money\">Rs 18.4<\/span> per kWh due to the addition of new capacity, which supports future growth.<\/p>\n<p><b>Transmission and Distribution Improvements<\/b><\/p>\n<p>The government is addressing transmission and distribution inefficiencies through infrastructure investments. Building infrastructure to bridge the North-South transmission constraint is a priority, as cheaper power produced in the South cannot be used due to these constraints, causing significant losses. A decentralized tubewell solarization program is also being implemented to reduce agricultural losses and improve the country&#8217;s carbon footprint.<\/p>\n<p><b>Market-Oriented Reforms and Sustainable Growth<\/b><\/p>\n<p>The government is committed to market-oriented pricing mechanisms and reducing the carbon footprint. The solar strategy aims to incentivize widespread adoption of solar energy without compromising grid stability. The power sector&#8217;s reform agenda includes eliminating inefficiencies, encouraging productivity gains, and fostering industrial growth.<\/p>\n<p><b>Future Outlook<\/b><\/p>\n<p>The government&#8217;s focus is on creating a sustainable energy sector that supports economic growth. By addressing inefficiencies, improving infrastructure, and implementing market-oriented reforms, the power sector can become a catalyst for <span class=\"xn-location\">Pakistan&#8217;s<\/span> industrial growth and economic stability.<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder0\">  <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>ISLAMABAD, July 3, 2024 \/PRNewswire\/ &#8212;\u00a0 REFORMING THE POWER SECTOR IN PAKISTAN Honorable Minister of Power Pakistan, Mr. Awais Leghari The power sector in Pakistan faces a myriad of serious and complex issues, ranging from bad governance to delays in decision-making and lack of economic growth. These challenges have led to inefficiencies that are embedded [&#8230;]\n","protected":false},"author":1,"featured_media":79226,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-56878","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pr-newswire"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.6 (Yoast SEO v21.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>REFORMING THE POWER SECTOR IN PAKISTAN - Biz and Live in Saigon<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"REFORMING THE POWER SECTOR IN PAKISTAN\" \/>\n<meta property=\"og:description\" content=\"ISLAMABAD, July 3, 2024 \/PRNewswire\/ &#8212;\u00a0 REFORMING THE POWER SECTOR IN PAKISTAN Honorable Minister of Power Pakistan, Mr. Awais Leghari The powe\" \/>\n<meta property=\"og:url\" content=\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/\" \/>\n<meta property=\"og:site_name\" content=\"Biz and Live in Saigon\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/SaigonbizGroup\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-03T12:04:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mma.prnasia.com\/media2\/2453548\/Honorable_Minister_Power_Pakistan_Mr_Awais_Leghari.jpg?p=medium600\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/#\/schema\/person\/267b348e6cf32a66aab33637c2d399a6\"},\"headline\":\"REFORMING THE POWER SECTOR IN PAKISTAN\",\"datePublished\":\"2024-07-03T12:04:16+00:00\",\"dateModified\":\"2024-07-03T12:04:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/\"},\"wordCount\":509,\"publisher\":{\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/#organization\"},\"articleSection\":[\"Pr Newswire\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/\",\"url\":\"https:\/\/english.saigonbiz.com\/vn\/reforming-the-power-sector-in-pakistan\/\",\"name\":\"REFORMING THE POWER SECTOR IN PAKISTAN - 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