ISLAMABAD: Federal Minister for Energy Awais Leghari has said that discussions with the international Monetary Fund (IMF) regarding captive power plants were underway, with the potential to reduce electricity rates by Rs.10-12 per unit

Speaking at a session of the National Assembly’s Standing Committee on Energy on Thursday, Leghari expressed optimism that the matter was nearing resolution

The minister revealed plans to review eight bagasse-based power plants and an additional 16 plants. 

He noted that these evaluations would be followed by an assessment of government-owned plants’ return on equity. “By the end of this month, the issue of captive power plants will be resolved,” he said adding, “The electricity prices for domestic consumers have already been reduced by Rs4 per unit.”

The power minister expressed his ambition to lower the overall electricity rate by Rs50, but also cited the complexities of achieving this goal.

Addressing concerns about K-Electric, Leghari criticised the power utility’s demand for Rs500 billion in profits over the next 5-7 years, calling it unreasonable.

He stressed that such a profit margin would unfairly impact consumers in Khyber Pakhtunkhwa and other regions.

The statement comes amid Prime Minister Shehbaz Sharif-led government’s repeated calls for the need to reduce the exuberant electricity prices.