News
Oct 8, 2024
The Economic Times
Pakistan Renegotiates Power Contracts with Independent Producers to Lower Electricity Tariffs Amid Social Unrest and Industrial Closures
Pakistan is renegotiating contracts with independent power producers to bring down "unsustainable" sky-rocketing electricity tariffs, the government said, as households and businesses bear rising energy costs.
Sky-high prices have sparked social unrest and brought industries to a standstill in Pakistan's $350 billion economy, which has contracted twice over the past couple of years on record-shattering inflation.
"The status quo of the present power tariff structure in the country is not viable," stated Awais Leghari, federal minister overseeing the power division, in an interview with Reuters on Friday. He confirmed that negotiations were under process with power producers since both parties agreed that the "status quo cannot continue."
Renegotiation has become considered a very important step towards stabilizing this nation's energy sector and providing relief to its strained economy.
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