Islamabad August 29, 2021: The plan for resolving the circular debt includes reducing the cost of electricity generation by flattening the capacity payment curve through restructuring power producers, says Federal Finance Minister Shaukat Tarin while unveiling medium to long term economic plan to achieve sustainable growth.
This will be done through a combination of re-profiling of project debts, reduction in Return on Equity (EOC) and O & M components of tariffs. At the same time, steps will be taken to boost demand for grid electricity by incentivizing captive-to-grid shift and integration of NTDC-KE networks.
It will also include replacing cross-subsidies with direct subsidies, lowering tariffs for high consumption categories, target price deregulation and improving governance through engagement with the private sector.
