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Pakistan's Senate on Thursday adopted 123 budget recommendations for FY2026-27, including calls for lower electricity tariffs, removal of fixed charges and GST from bills, and a transparent roadmap to reduce capacity payments and circular debt. The proposals are non-binding on the National Assembly, which will review them before casting the final budget vote.
Power Minister Awais Leghari confirmed that negotiations with CPEC-linked Chinese power producers have produced no meaningful concessions despite ongoing efforts at debt-reprofiling. Pakistan has secured over Rs. 3.5 trillion in savings by renegotiating deals with 29 other private and state-owned power plants, but CPEC's government-to-government framework makes similar concessions far more diplomatically complex.
Pakistan's Senate Standing Committee has directed NEPRA to investigate Independent Power Producers over capacity payments, over-invoicing, and unjustified contractual extensions. The probe requires NEPRA to submit a detailed comparative report as parliamentarians grow increasingly concerned over the role of IPP costs in driving up electricity tariffs.