Business Desk 
Nov 05, 2024
The government is preparing to introduce a uniform gas pricing system for all consumer categories, aiming to simplify rates and eliminate cross-subsidies. Currently, industrial sectors subsidise domestic and commercial consumers.
The decision on this uniform gas pricing is expected to be finalised within a month or two, Federal Minister for Power Division Sardar Awais Ahmad Khan Leghari shared at the launch of a study on the economic impact of in-house power generation for industries.
Gas uniform pricing system
The uniform pricing system would standardise gas rates across different categories, removing the existing variations. Leghari highlighted that under the plan, captive power plants — industries generating their own electricity — would be disconnected from gas supply and linked to the national grid, as agreed with the IMF.
He further shared that costly projects under the previous IGCEP (Indicative Generation Capacity Expansion Plan) will be omitted to follow a more sustainable, less-costly approach for future power expansion.
Leghari addressed the potential challenge of adding 17,000 MW of power over the next decade, which could increase electricity tariffs and pressure the power sector. Pakistan’s peak demand is around 25,000 MW, with an installed capacity of 43,000 MW.
Read more: SBP cuts policy rate by 250bps to 15% amid inflation descent
Additionally, the country must purchase electricity from the CASA-1000 project, importing power from Central Asia. However, the minister expressed concern over the high costs and contractual limitations of CASA-1000, which does not allow Pakistan to export surplus electricity during winters.
The minister also pointed out that over 3,200 MW of solar power has been added through rooftop solar installations, underscoring the need to adjust solar tariffs to align with national grid costs. The government is also negotiating with Independent Power Producers (IPPs) to switch from a “take or pay” to a “take and pay” model to lower costs.
The government remains committed to privatising three power distribution companies by June 2025 while developing a competitive private power market, set to launch by early 2025.
