ISLAMABAD: In a significant move, Liberty Power, Pakistan’s first private power plant, has proposed renegotiating its contract with the government, offering to shift from dollar-based payments to transactions exclusively in Pakistani Rupees. The company is also willing to lower its profit margins to help reduce the country’s financial strain.
Shahryar Chishti, Chairman of Pak Asia Investment, Liberty Power’s parent company, announced this proposal at a press conference in Karachi. He emphasized that the offer reflects the company’s commitment to supporting the nation during these challenging economic times. “We are ready to present these proposals to the government soon,” Chishti confirmed.
He further highlighted the need for a comprehensive review of the electricity sector, noting that high electricity costs are unsustainable for consumers and will eventually impact the viability of power producers. A significant part of these costs, he explained, is tied to fuel charges.
Chishti stressed that cheaper gas would lead to more affordable electricity for consumers and suggested that eliminating the gas development surcharge could further lower prices. He acknowledged the worsening energy situation in Pakistan and noted that while Liberty Power shared its profits in 2021, the company has faced challenges in the electricity sector since then.
To address the rising costs, Liberty Power plans to submit proposals to the federal government aimed at reducing electricity prices. The company is prepared to adjust its returns from dollars to Pakistani rupees and calls on other power plants to work together to find solutions that lower electricity costs.
“Collective efforts are essential to relieving consumers through reduced electricity prices,” Chishti emphasized.
Imran Ahmed, CEO of Liberty Power, explained that the plant operates on raw gas sourced directly from local fields. He suggested that if the government could provide raw gas from additional fields, Liberty Power could produce electricity at a lower cost, benefiting the national grid.
The executives also stated that rising electricity costs are largely driven by debt, limited usage, and heavy government taxes.
They warned that if electricity remains unaffordable for consumers, it could jeopardize the sustainability of power companies. “We must all collaborate to address this issue,” they urged.
