The Minister of Authority, Sardar Owais Khan Legari, announced that negotiations with banks to obtain loans worth 1.34 trillion rupees in the final stages, which aim to reduce the circular debts of the energy sector, which are currently reaching 2.4 trillion rupee.
According to the media reports, the Minister of the Authority said that once banks are submitted to their papers, the agreements will be completed, which helps to reduce circular debt by 300-35 billion rupees.
Leghari explained that the loans will be paid through the additional DSS fees of 3.23 rupees per unit, with current and future governments continuing to pay this mechanism.
It also highlighted the ongoing discussions with China regarding debt photography and converting to local coal, noting that these talks were progressing smoothly. He pointed out that the customs tariff in June 2025 may lead to further cuts with successfully implementing continuous reforms.
“Our reforms focus on creating a sustainable and long -term reduction mechanism based on efficiency,” he said. He also explained that if the customs tariff cuts are based only on the IPP contracts that were re -negotiated, the International Monetary Fund (IMF) will not support such important price cuts.
According to the minister, the International Monetary Fund stressed the importance of continuous reforms, which helped build confidence in the energy sector towards sustainability.
In addition, Leghari revealed that the central trading of loose energy markets (CTBCM) will be operated by the end of this year, with an initial plan to start bilateral trade from 800-1000 megawatts of electricity. He expressed optimism that continuous reforms will put great pressure on electricity prices.
