ISLAMABAD: The Ministry of Finance and the Ministry of Energy have jointly proposed several measures aimed at providing significant relief in electricity bills, according to inside sources.
One of the key proposals involves a substantial lump sum payment of up to 4 trillion rupees to cover capacity payment obligations to Independent Power Producers (IPPs). This strategy is intended to consolidate payments over the next three to five years, potentially reducing electricity costs by over 5 rupees per unit.
The Ministry of Energy suggests pooling the necessary funds with the Ministry of Finance, which would be responsible for arranging the financing. Once secured, the funds would be transferred to the Ministry of Energy for the bulk payments to the IPPs.
However, the Ministry of Finance has indicated that any proposed relief on electricity bills will depend on approval from the International Monetary Fund (IMF). Prime Minister Shehbaz Sharif has been updated on these proposals, though a final decision has yet to be made.
