ISLAMABAD: In their bid to address Karachi’s energy woes, the caretaker federal government and Karachi Electric (KE) Friday inked various agreements provisioning stabilised electric supply to address Karachi’s energy needs.
The development not only aims to resolve longstanding disputes between the government and KE but also provisions formalising and securing a stable power supply from the National Grid to the metropolis.
The agreements include the Tariff Differential Subsidy Agreement (TDA) and a 10-year Power Purchase Agency Agreement (PPAA), marking a significant milestone for the power sector. Meanwhile, the Interconnection Agreement (ICA) is expected to be signed following approval from the National Electric Power Regulatory Authority (Nepra).
Furthermore, the signing of a Mediation Agreement (MA) will prove essential for reconciling legacy contentions on payables and receivables between KE and government entities.
Speaking on the occasion caretaker Minister for Power and Petroleum Muhammad Ali said, “We are tackling a ‘Gordian knot’ in the power sector with a vision to bring efficiency and long-term stability. Today’s signing is one facet of this, where we have addressed legacy bottlenecks. It demonstrates the willpower and commitment of our institutions towards Pakistan.”
He underscored that the ministry is striving to provide an enabling environment for the power sector to thrive because the ultimate beneficiary of our interventions is the customer.
“This is the best news to the Karachi consumers as power issues will be much more stabilised now. KE has always been treated by the government as a partner” he added.
Stressing the significance of streamlining the issues and resolution of legacy matters, Finance Minister Dr Shamshad Akhtar, said: “We believe that today’s achievement will also send a strong positive signal to investors across the globe who are eyeing Pakistan as a potential market.”
Expressing his gratitude at the occasion, KE CEO Moonis Alvi termed the agreements as a “momentous occasion” representing a paradigm shift in the energy landscape as well.
He also thanked Prime Minister Anwaar-ul-Haq Kakar, ministers, SIFC, the task force under Shahid Khaqan Abbasi along with the innumerable other stakeholders who demonstrated resolve and pragmatism in bringing these legacy matters to a close.
Following recent approval by the Economic Coordination Committee (ECC) chaired by Dr Akhtar, the summary had been ratified by the cabinet also and was developed on the recommendations put forward by the prime minister’s task force on energy that was chaired by Abbasi.