The Pakistani government is considering cutting electricity rates due to widespread protests over high power bills. Reports indicate that a Rs. 4 trillion payment to Independent Power Producers (IPPs) is being considered.
The proposed plan involves consolidating and paying capacity payments due over the next 3-5 years in advance, which is expected to lower power tariffs by Rs5 per unit.
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This move aims to alleviate financial pressure on IPPs and resolve revolving credit issues by providing a one-time payment.
PM Shehbaz Sharif has been briefed on the proposal, but no final decision has been made yet. Finance and Energy ministry officials are working on a plan to quickly reduce electricity bills.
