Federal Minister for Energy, Awais Leghari, has admitted that Pakistan currently has the highest electricity prices in the region. Addressing the National Youth Convention in Islamabad, Leghari emphasized that the government is actively working on addressing issues related to Independent Power Producers (IPPs), with expected positive developments in the coming months that will benefit both the public and industrial sectors.
Leghari clarified that Pakistan’s actual power generation capacity stands at 29,000 MW, contrary to the widely quoted figure of 45,000 MW. He noted that the year-round electricity demand is only 7,000 MW, with peak demand reaching up to 24,000 MW.
The minister highlighted the financial burden of maintaining an additional 1,845 MW in the system, which is only necessary for 85 hours annually. He revealed that this results in an annual cost of Rs 50 billion. Leghari suggested that if the country could tolerate 85 hours of load shedding spread over 40 days, it could save the national exchequer Rs 50 billion.
Furthermore, he pointed out that enduring 874 hours of load shedding annually—approximately 10% of the year—could result in savings of up to Rs 100 billion in capacity payments. He acknowledged the high cost of electricity in Pakistan, admitting, “I concede that we are providing the most expensive electricity in the region.”
