The benefits of free gasoline may also be eliminated in the subsequent phase, according to sources, which would take effect on July 27,2024.
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- The government made the decision to create a backup plan in the face of extreme pressure.
- Free electricity will no longer be provided to government and semi-government institutions.
- Additionally, increasing the export goal to $60 billion is suggested in the new energy plan.
ISLAMABAD: Department of Energy sources claim that the government is thinking of cutting off free power to government employees, including judges, bureaucrats, and legislators.
In the face of tremendous political and public pressure, the federal government has made the decision to create a backup plan within the Ministry of Energy.
Informants acquainted with the situation state that the suggested strategy also raises the possibility of later eliminating the advantages of free gasoline.
The sources stated that the nation is now experiencing extreme financial strain and is heavily indebted to foreign countries, and that drastic actions are necessary to prevent a long-term default.
In light of the severity of the nation's financial crisis, he continued, raising the export goal to at least $60 billion has become essential.
The idea calls for the provision of only the most basic amenities for business and industry, and it also suggests lowering the Maximum Demand Indicator (MDI) fees for companies.
A performance evaluation of the Oil and Gas Regulatory Authority (Ogra) and the National Electric Power Regulatory Authority (Nepra) has also been suggested in addition to this.
Concerns over high rates of power theft and distribution losses brought on by debt accumulation in the production chain led the International Monetary Fund (IMF) to approve a $7 billion bailout for South Asia's highly indebted economy this month.
According to Power Minister Awaiz Leghari, structural changes are being made by the government to bring down "circular debt," or public obligations resulting from delinquent bills and subsidies in the electricity industry, to just Rs 100 year.
Billion rupees or more. Power theft and distribution losses are rampant in the nation's power sector, which leads to generation chain debt accumulation.
Households in the lower and middle classes have been severely impacted by the government's strict measures, such as increases in electricity rates, to comply with demands from the International Monetary Fund (IMF).
The federal government ceased giving out free electricity units to Grade 17 and above officers of enterprises that generate, distribute, and manage power in December of last year.
However, these officers received a wage increase in exchange for the return of this benefit. The Federal Cabinet later confirmed the decision, which became effective on December 1, 2023, after it was made by the Cabinet Committee on Energy (CCoE) on October 26, 2023.
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