Pakistan’s Minister of Energy, Awais Leghari, has stated that while the Diamer Bhasha Dam will significantly increase water availability, it will not provide cheap electricity. In a workshop on energy sector reforms in Islamabad, Leghari clarified that the government is working towards increasing electricity supply, but challenges remain in ensuring affordable power for consumers.
He added that the government is moving away from direct electricity buying and selling, with privatization efforts underway. However, he emphasized that these changes must not worsen conditions for consumers. He assured that the government is focused on minimizing any potential negative impact on the public due to privatization.
Leghari also addressed concerns about the financial challenges related to the Diamer Bhasha Dam, particularly its cost-effectiveness for electricity generation. While the dam will increase water supply, it will not generate cheaper power. He pointed out that the electricity produced from the dam will, in fact, be more expensive.
The Minister shared that financing for power production from the dam remains a major hurdle, making it difficult to generate affordable electricity. He also mentioned the government’s intention to eliminate power sector losses within the next 3 to 4 years. To achieve this, the country needs to ramp up power production using coal and gas to meet the basic load demand.
Furthermore, Leghari highlighted the potential of solar energy in reducing costs, specifically mentioning a plan to convert tube wells in Balochistan to solar power, which could save the country up to 60 billion rupees annually.