Federal Minister for Energy Owais Leghari Outlines Plans for Privatization of DISCOs and Reduction in Circular Debt

ISLAMABAD, PAKISTAN:Federal Minister for Energy, **Owais Leghari**, has announced that the government is moving forward with plans to privatize Distribution Companies (DISCOs) and eliminate circular debt in the energy sector. Speaking in a private television show, Leghari expressed his intention for the government to step back from the business of buying and selling electricity.

According to Leghari, there is a need to improve the **NEPRA Act** to allow private sector participation in the electricity procurement and sales process. “The government will no longer be the sole entity responsible for electricity purchasing. We are bringing the private sector into the process of electricity buying and selling,” he said.

Leghari also pointed out that the country is facing significant challenges in electricity transmission, and addressing these issues could potentially reduce electricity prices by **Rs 2 per unit**. He revealed that improvements have already been made, with **Rs 339 billion** in circular debt reduction and **Rs 145 billion** saved by reducing the losses of distribution companies.

Regarding the **China-Pakistan Economic Corridor (CPEC) power plants**, Leghari mentioned that work is underway to switch these plants to **local coal**. He stated that the government is also working on **debt reprofiling** for these plants. However, the transmission issues in the country have resulted in higher electricity prices, with the cost per unit increasing by **Rs 1 to Rs 2**.

Leghari further emphasized that **imported coal plants** would be transitioned to use local coal, which is part of the government’s efforts to enhance **energy security**. He mentioned that a study on this transition would be completed by **June**, and once implemented, **fuel cost adjustments** would be significantly reduced.

As part of the government’s ongoing efforts, Leghari announced plans to convert three more power plants, including the **Jamshoro Power Plant**, to **local coal**. Additionally, all electricity meters across the country will be switched to **automatic** systems. This decision is expected to be finalized by **June**.

The energy minister’s plans aim to not only resolve long-standing transmission issues but also contribute to a reduction in electricity prices, thereby providing much-needed relief to consumers across Pakistan.