Prime Minister Shehbaz Sharif directed the authorities on Friday to further reduce power tariffs and expedite the implementation of the action plan for future power generation projects.

Chairing a meeting in Islamabad to evaluate and discuss the country’s future electricity and power plans, the prime minister stressed the need to prioritise low-cost power projects based on local resources.

PM Shehbaz said that low-cost power projects produced environment-friendly and affordable electricity.

He further directed that the current electricity generation capacity should also be shifted to solar energy.

“Globally, electricity is being produced from environmentally friendly, low-cost solar energy,” he noted, adding that Pakistan was fortunate in this regard as the country had vast potential for solar energy.

The prime minister was informed about the progress of ongoing hydropower projects across the country and was also briefed on the progress of phasing out inefficient power plants that consumed more fuel but produced less electricity.

He ordered the immediate closure of such outdated power plants, adding that closing them would not only save valuable foreign exchange but also reduce electricity costs for consumers.

The premier instructed that immediate action be taken against all officials deliberately obstructing reforms in the power sector and that reforms in the electricity transmission system be expedited.

“The power transmission system should be upgraded according to international standards,” the prime minister ordered.

He also directed the swift implementation of a system based on modern technology for the selection and transmission of low-cost electricity.

The prime minister issued instructions to complete all measures for the reform of the power sector within the specified timeline.

The meeting was attended by federal ministers Ahad Cheema, Awais Leghari, Dr Musadik Malik, Minister of State Ali Pervaiz Malik and other senior officials.

Today’s meeting came after the federal government on Tuesday approved settlement agreements with eight independent power producers (IPPs) running on bagasse, aiming to reduce electricity tariffs and save around Rs240 billion for the national exchequer.

The decision was made during a federal cabinet meeting. The approval followed recommendations from the Ministry of Energy’s power division.

The power plants agr­e­e­ing to revised production costs included DW Unit I, Unit II, RYK Mills, Chiniot Power, Hamza Sugar, Al-Moez Indus­tries, Thal Indus­tries and Chinar Industries.

After the agreements’ approval, the Central Power Purchasing Age­ncy will seek approval from the National Elec­tric Power Regulatory Authority for tariff adjustments.

The Prime Minister’s Office had said in a press release the agreements were expected to reduce electricity prices for consumers and provide an estimated Rs238bn relief to the exchequer.