Awais Leghari, Negotiations with IPPs, Arbitration and Forensic

ISLAMABAD: Federal Minister for Power Sardar Awais Leghari attended a detailed session with Power Sector International Development Partners on power sector reforms and their future direction.

The development partners were led by World Bank Country Director Mr. Najy Benhassine, included representatives from the IMF, ADB, IFC, KFW, German Embassy, FCOD, UNDP, and AIIB.

The federal Minister Awais Leghari briefed participants on the reforms implemented by the power division to improve efficiency and discipline.

The minister highlighted efforts to make electricity prices more competitive and affordable, particularly for industries.

He assured that all negotiations with Independent Power Producers (IPPs) are conducted transparently, with options to walk away, resort to arbitration, or undergo a forensic audit per the agreement terms.

Awais Leghari stated that the government has maintained transparency, which resulted in cutting around 7,000 MW from IGCEP’s committed 17,000 MW, saving significant expenses.

He outlined various reforms such as transitioning from “Take or Pay” to “Take and Pay,” eliminating furnace oil-based plants, and converting imported coal to local coal.

The Minister also discussed removing transmission constraints, splitting NTDC into Energy Infrastructure and Development Company and National Grid Company, and developing regulatory frameworks for Special Economic Zones (SEZs).

He emphasized the importance of eliminating circular debt, rationalizing subsidies, and net metering adjustments to reduce the burden on consumers.

The Minister concluded by mentioning the government’s decision not to purchase further power, the privatization of DISCOs, improved governance of DISCOs’ boards, and reforms at the Power Planning and Management Company.

Participants appreciated the reforms initiated by the Power Division and assured their support in the process.