A.   Background (BG)

1.   This refers to the related Important TLQCs in trail, blue, italic and double line (a) 163 of 21.3.25 about Govt Electric saving of Rs 1.4 Trillion and Bills reduction & Action (b) 157 of 3.3.25 about Electricity Bills significantly reduction claimed & KCV (c) 155 of 27.2.25 about Government saved Rs 1.1 Trillion & Action for Bills reduction 

2.   We also refer to several PGEC including (a) 129 of 18.10.24 about Five + 18 Power Companies Agreement Termination & Jamaat, etc efforts for U (b) 118 of 30.8.24 about KE FCA Bomb of Rs 37.75 for May-June 2024 per NEPRA order in upcoming bill and Jamaat –e-Islami

B.   Updated Commentary

1. Further to KQU 3634 dated 4.11.25, being an important matter, we would inform you about Video Big Decision! Govt to Stop Power Generation? Historic Cut in Electricity Bills (Attachment 385.1) of Mr Awais Leghari.

2. Explains that the high cost of electricity is due to power generation agreements being in USD, the devaluation of the Rupee, and high interest rates. The government's primary goal is to reduce electricity costs for the people.

3. Elaborates on the power sector's debt and Pakistan's energy costs, noting that the country's energy costs are internationally competitive. He highlights efforts to reduce electricity prices by approximately 1 to 1.5 rupees per unit and initiatives to provide discounted rates to industries and electric vehicle users.

4. A reduction of approximately Rs 16 per unit in electricity costs, achieved after eight to nine months of collaboration with the Finance Ministry and the IMF. The government is offering surplus electricity at a competitive price of about 7 cents per unit to boost industry and agriculture.

5. Mr Awais Leghari announces a historic reform in Pakistan's electricity sector, claiming the government will no longer purchase electricity, allowing people to buy and sell power among themselves for better prices. He asserts this reform, set to be operationalized by January or February, will revolutionize the electricity environment, surpassing any previous or future changes.

6. How the government auctioned off 17 useless plants, recovering approximately 48 billion rupees from a government organization and 9 billion rupees from the private sector. He details a plan to eliminate 102 billion of circular debt over six years without burdening consumers, thanks to contributions from the Finance Ministry and banks.

7. Mr Awais Leghari explains that the government has reduced circular debt by renegotiating and lowering interest rates, and by decreasing distribution companies' losses through better governance. He notes a significant reduction in losses from a quota electric company due to unpaid bills from tube well owners, which the federal government addressed.

8. Mr Awais Leghari reports that professional governance has invested 16.5 billion, with expectations to recover 40 billion this year, potentially offsetting solarization investments within a year due to reduced losses. He emphasizes the aggressive rollout of automation in the power sector and plans to comprehensively upgrade Pakistan's metering infrastructure over the next three years.

9. Explains that all meters, whether single-phase or three-phase, will be automatically metered, offering prepaid services to consumers. He highlights a major reform, noting the ministry's lack of technical expertise in the power sector and the appointment of PPPMC as a technical arm with enhanced salaries.

10. Explains that savings have already been made due to a PPPMC institution, and he details how NTDC has been split into different parts, including ISMO, NGC, and IDMIC, to ensure timely project completion. He emphasizes that without the IGSF reform, consumers would be buying expensive electricity, preventing further investments of 17 billion USD.

11. Explains how strategic planning in the power sector saved consumers from bearing an additional 4,000 billion burden over the next decade. He details the integrated generation capacity planning process, which includes assessing future energy needs and optimizing transmission lines, resulting in significant cost savings.

12. Explains how renegotiating non-competitive power purchase agreements will save consumers 600 billion rupees by 2058. He emphasizes the importance of institutionalizing this environment to prevent future backsliding and ensure a more competitive energy sector.

13. Highlights the government's commitment to power sector reforms, emphasizing the termination of environmentally unhealthy plants and the establishment of lasting foundations. He draws parallels to the telecom sector's deregulation, expressing pride in the government's efforts under Shehbaz Sharif's leadership.

C.   Multiplication - for your Electricity Cost reduction 

If Public support continues with Invitation to your friends & relatives to be a part of this great struggle based on regular increase in Jamaat e Islami membership form being filled (atleast multiply this), then 4 Trillion will be educe Electricity Bills for Head Office, Branches, Industry & Home. Have your Goodself, family, friends filled the Online Form?  It would be in the Interest of Justice and Public interest at Large that now DISCOS like KE & XWAPDA should reduce prices, if we keep pressure on them and Govt.

Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this PGEC for the Noble Cause to Impart Knowledge, so as to save Electricity usage by your Entity, Home, Masjids, etc leading to less Units usage bill and all Professionals & Masses may make issue as to are being charged to Good Payers. 

(a) Capacity Charges, etc

(b) Why Line Losses (including for Govt, KE & XWAPDA DISISCOs employees and theft) and Bribery as to increase in Tariff 

(c) Govt Saving of Rs 1.4 billion

(d) A huge counter effect of 4 Federal Sales Tax types.

We expect that you would support and be a Member of the JI, whose workers are taking risks and working in your Favour; and Against Unreasonable Prices due to Capacity, Line Losses, etc; and will atleast multiply. 

Otherwise, be ready for constant increases in Electricity Bills with different methods, inspite of Govt claims of New Agreement and Saving,  nothing will be transferred to the public by bills reduction.

D. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

Quick Commentary Service Provider and High Level 440+ Tax & Levies Laws Consultants)

Head of Tax & Professional Excellence Services (Symbols of High Quality Practical Tax, Levies & Corporate Training for Beginners to High Levels' Professionals) 

PTCL: 92-21-34329108 Mobile: 0334 322 3161 Website: kasbati.co Facebook:  https://www.facebook.com/taxexcellence/ 

Google Map link: Tax Excellence  YouTube Channel Tax Excellence