Efforts at Reducing the Power Costs
According to officers of Power Division, the low prices will be in the range of Rs 3 to Rs 8 per unit within the next two months of federal efforts intending to secure price cuts on electricity.
Loan for Circular Debt Settlement
In order to accomplish this, the government will take a loan of Rs 1,300 billion at fixed rate and term from banks to wipe out circular debts in the power sector.
Savings through IPP Agreements
The official stated that negotiations with Independent Power Producers (IPPs) have already saved Rs 700 billion, including Rs 300 billion worth of interest waivers. Contracts with six IPPs terminated, and take-and-pay arrangements with twenty-five IPPs have been made.
Continuing Work Task Forces Funded
A task force is negotiating with the government power plants to bring further reductions in electricity prices. Circular debt in the power sector is currently pegged at around Rs 2,300 billion, and that is a major challenge facing the government in its bid to nullify the circular debt.