Pakistan, April 12 -- The federal government has made progress in fixing financial issues in the power sector. Energy Minister Leghari told the National Assembly that circular debt dropped by Rs9 billion in just six months. It decreased from Rs2,393 billion in June 2024 to Rs2,384 billion in December 2024. This progress came through continued reforms and cost-saving decisions.

The minister also shared that the government ended contracts with six Independent Power Producers (IPPs). This move alone will save Rs411 billion. Furthermore, the tariff rates for eight bagasse power plants and fourteen thermal IPPs were adjusted. These new deals are expected to save Rs1,160 billion over the projects' remaining lifespans.

Electricity costs for co...