The federal government has unveiled a comprehensive reform plan targeting both the short-term and mid-term improvements of the power sector. Key initiatives include eliminating cross-subsidies, revising tax structures, and boosting electricity demand during the winter months.
To alleviate the financial strain on the industrial sector, the government has decided to abolish cross-subsidies. Subsidies for domestic consumers will now be linked to data from the Benazir Income Support Program (BISP), ensuring that financial assistance is provided only to eligible households.
The reform plan also includes tax revisions within the power sector. Captive power plants are set to be integrated into the National Grid, with imported coal-fired plants transitioning to indigenous coal. Additionally, the government aims to double electricity demand from 10,000 MW to 20,000 MW during the winter by promoting the use of electric appliances, such as heaters and geysers, and replacing substandard fans.
A three-to-five-year plan has been established to address transmission issues across the grid. Furthermore, diesel-powered tubewells across the country will be converted to solar power. The private sector’s role in the boards of distribution companies (DISCOs) will be expanded, and the Central Power Purchasing Agency (CPPA) and National Transmission and Despatch Company (NTDC) will be merged to form an independent market operator.
These reforms are slated for implementation within a six-month to one-year timeframe, with some measures being short-term and others medium-term. The government is committed to these decisive actions to realign the energy sector, aiming to create a more efficient and sustainable power infrastructure for the future. Zaheer Ali Khan reports from Islamabad.
