"Interim Energy Minister unveils strategy to lower electricity expenses."
"Caretaker Federal Energy Minister Muhammad Ali discusses plans to reduce electricity expenses, including extending debt repayment terms and diversifying the energy mix with Thar coal and renewables. Additionally, the government considers privatizing former Wapda distribution companies under a 20-25 year Long-Term Concession Agreement, pending a decision by the federal cabinet."
"The minister acknowledges the possibility of gas load-shedding in the upcoming winter, but aims to limit shortages compared to the previous year. Gas prices will increase soon, but efforts will be made to ensure that 60% of low-income consumers are not burdened with more than Rs. 500 per month. However, gas costs for large users are expected to significantly increase."
"The minister reported meetings between the Power and Privatization Divisions with the World Bank and IFC, focusing on Long-Term Concession Agreements (LTCAs) for ten power companies. Fourteen power sector units, including the Guddu and Nandipur power plants, had been previously approved for privatization. A summary for federal cabinet approval will include considerations of transferring DISCOs to provinces, privatization, and LTCAs. Muhammad Ali emphasized that LTCAs will adhere to global private sector management standards, with contractors earning returns based on performance and investments, applying the same pattern across DISCOs."
"The Power Division, in collaboration with other stakeholders, plans to enhance DISCOs' management by making necessary changes to the Board of Directors. The minister acknowledged that the caretaker government may not complete all its tasks during its tenure but is committed to initiating and progressing the process."
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