PM Shehbaz Announces Free Electricity Market to Lower Power Tariffs and Ensure Sustainable Supply

ISLAMABAD: Prime Minister Shehbaz Sharif announced the upcoming establishment of a free electricity market in Pakistan, aiming to introduce competition in power supply and reduce electricity tariffs. Chairing a high-level meeting on power sector reforms and the Integrated Generation Capacity Expansion Plan (IGCEP) 2024–2034, the Prime Minister emphasized that any delays in energy projects are unacceptable.
According to a statement from the PM Office, the free market model will enable competitive bidding for power generation projects, resulting in more affordable and sustainable electricity for consumers. The re-evaluated IGCEP, revised under the PM’s direction, now excludes 7,967 MW worth of high-cost power projects, saving an estimated $17 billion (Rs. 4,743 billion).
The updated plan prioritizes local energy resources and renewable alternatives such as solar, nuclear, and hydroelectric power over imported fuels. This strategic shift is expected to conserve significant foreign exchange reserves.
The Prime Minister also appreciated the efforts of Federal Minister for Power Sardar Awais Leghari and his team for achieving the cost-saving milestone and termed it a historic success. He noted that after a recent reduction of Rs. 7.50 per unit in electricity tariffs, the government remains committed to long-term reforms in the energy sector to provide further relief to the public.
PM Shehbaz directed the timely completion of major projects like the Diamer Bhasha Dam and stressed that delays in energy infrastructure development will not be tolerated.
Key ministers including Sardar Awais Leghari, Ahsan Iqbal, Attaullah Tarar, Ali Pervaiz Malik, and senior officials from relevant departments attended the meeting.