Federal Minister for Power, Awais Leghari, announced on Monday that the ruling coalition government is contemplating introducing a prepaid meter system for electricity, similar to the prepaid systems commonly used for mobile phones.
During a press conference in Multan, Leghari emphasized the government’s determination to eliminate electricity theft nationwide. He assured the public that significant steps are being taken to tackle this issue and to enhance convenience for electricity consumers.
The minister disclosed that discussions with power distribution companies are ongoing to ensure that the Rs45 billion relief package is distributed to all eligible consumers.
The proposed prepaid meter system, if implemented, would allow consumers to pay for their electricity usage in advance, thereby reducing the risks associated with theft and defaulted payments.
Leghari also mentioned that the government has presented its reform plans and energy vision to China’s National Energy Administration. A critical aspect of these discussions included the re-profiling of debt, estimated between $8.5 and $9 billion, which could lead to a reduction in electricity prices and an increase in demand.
Furthermore, he noted that the finance minister, along with other officials, has engaged in talks with Chinese bankers regarding potential investments in Pakistan’s power sector.
A key element of these reforms involves transitioning electricity generation plants from using imported coal to local coal, a move that could significantly decrease the cost per unit of electricity. Leghari highlighted that four coal plants, including the government-owned Jamshoro plant, are under consideration for conversion to local coal, to reduce electricity costs from around 24 rupees per unit to approximately 8 rupees per unit.
