Minister of State for Finance Ali Pervez Malik has acknowledged the unsustainable electricity tariffs, stating that current rates of Rs 60 per unit for businesses and Rs 40 per unit for households are untenable. In a talk with local TV, Malik outlined the government's efforts to ease the burden on consumers, highlighting a Prime Ministerial initiative providing Rs 50 billion in relief for those using up to 200 units of electricity. However, he emphasized that lasting solutions require comprehensive reforms. Malik discussed the legacy issues surrounding Independent Power Producers (IPPs), noting that IPPs established in 1994, 2002, and 2014 are collectively owed around Rs 80 billion.

He called for investigations into any illegal transactions related to these agreements. Addressing the broader context, Malik mentioned that while some power plants are government-operated or financed by Chinese banks, there is a pressing need for effective communication and problem-solving with involved parties. The Minister also highlighted a forthcoming digital overhaul of the Federal Board of Revenue (FBR) expected to bring 4 to 5 million new taxpayers into the system, underscoring the challenge of managing these reforms with limited resources.

Credit: Independent News Pakistan