Power Minister Awais Leghari has asserted that the government will not alter the independent power producers contracts under any circumstances, underscoring their critical importance to the country’s energy infrastructure.
In an interview’ “Naya Pakistan with Shahzad Iqbal,” Leghari compared these contracts to the China-Pakistan Economic Corridor agreements, emphasizing their fundamental role in the sector.
Leghari acknowledged the financial strain caused by the depreciation of the Pakistani rupee, which has exacerbated the burden of repaying loans for capacity payment plants. This economic challenge has significantly impacted the power sector’s stability. His comments come as Jamaat-e-Islami (JI) continues its sit-in protest against high electricity bills and controversial IPP agreements.
The protest, which has entered its third day on Murre Road in Rawalpindi, saw initial talks between JI and the government, during which the latter committed to forming a technical committee to address ten specific demands.
Despite the protests, Leghari maintained that there will be no changes to the IPP contracts, asserting that the current power prices are already lower than regional rates. He particularly highlighted the significance of solar power agreements, noting that the seven-year contracts for solar panels are of great importance. The minister clarified that there have been no discussions with Chinese power producers or other plant owners about altering these agreements.
Instead, the government plans to review the entire structure responsibly and negotiate adjustments that benefit all parties involved.
Leghari also mentioned ongoing efforts to reduce electricity prices and transition towards coal-based power generation, aiming to address the sector’s challenges while maintaining the integrity of existing agreements.
