ISLAMABAD: Pakistan's government is planning to restructure its massive power sector debt to lower electricity tariffs. Power Minister Sardar Awais Leghari said this step aims to improve grid consumption and reduce the Rs1.6 trillion circular debt burden. The soaring high tariffs have pushed consumers away from the grid, while rapid growth in solar power has posed a major challenge to grid stability. The government is negotiating with the World Bank, Asian Development Bank, and Chinese creditors to extend debt repayments and secure longer, concessional loans. The minister stated, "We estimated such a large-scale refinancing of power sector debt could bring down overall tariffs, particularly for industry, to 8-9 cents per unit from 11.5 cents per unit at present." Currently, clean energy forms 55% of Pakistan's power mix and is expected to exceed 90% by 2035. However, daytime demand can drop to 8,000MW due to solar energy but spikes beyond 26,000MW during peak hours, forcing costly standby power plants to operate. Leghari called this a "people-led solar revolution" winning global praise but warned that unfair pricing shifts solar costs unfairly to other consumers, which "needs to be rationalised." Electricity prices have fallen 20% over the past 18-20 months. Residential tariffs remain 35-40% subsidised despite fixed charges. Industrial tariffs were cut 35% to around 11.5 cents per unit but require further reduction for global competitiveness. Meanwhile, Pakistan has launched the Prime Minister’s Fan Replacement Programme, aiming to replace old fans with efficient models. The National Energy Efficiency and Conservation Authority has completed preparations in 81 days, meeting its 90-day target. The scheme, backed by a Rs2 billion government guarantee and cooperation with the State Bank and commercial banks, will cut energy bills and reduce peak summer electricity demand. Climate Change Minister Musadik Malik said replacing an old fan could lower yearly energy bills by Rs12,000 and reduce carbon emissions. This initiative aligns with Pakistan’s aim to improve energy efficiency and climate resilience.