Pakistan Cancels 8,000 MW Expensive Power Procurement, Saving $17 Billion Under IMF-Backed Reforms

Pakistan has canceled plans to acquire 8,000 MW of costly electricity, a decision projected to save $17 billion, according to Power Minister Sardar Awais Ahmed Khan Leghari. This move, made strictly on merit, forms part of comprehensive reforms under the $7 billion IMF program designed to reduce fiscal stress, circular debt, and losses within the power sector.

The government has already cut sector losses from $2.1 billion to $1.4 billion and lowered circular debt by $2.8 billion. National electricity tariffs have decreased by 20 percent, while recovery rates improved by $660 million. These reforms aim to stabilize financial conditions, reduce the burden on consumers, and attract both domestic and foreign investment.