The Ministry of Finance and Ministry of Energy have presented various suggestions to offer significant relief in electricity bills, sources report. Key proposals include a massive lump sum payment of up to 4 trillion rupees to cover capacity payment obligations. This move aims to consolidate payments to Independent Power Producers (IPPs) over the next three to five years, resulting in a potential reduction in electricity costs by over 5 rupees per unit. The Energy Ministry has recommended pooling the necessary funds with the Finance Ministry. The proposal suggests that the Ministry of Finance should arrange the financing and then transfer the required amount to the Ministry of Energy, which will subsequently make the lump sum payments to the IPPs. However, the Ministry of Finance has made the proposed relief in electricity bills contingent on approval from the International Monetary Fund (IMF). Prime Minister Shehbaz Sharif has been briefed on these proposals, but a final decision is still pending.

Credit: Independent News Pakistan