The Pakistani cabinet has reportedly approved a plan intended to resolve the serious energy crisis facing the country.

According to reports, there are three elements to the cabinet proposal:

  • Two weekly holidays
  • Early closure of businesses
  • A recovery campaign on defaulters

 It has also been reported that the cabinet meeting decided to dissolve the Pakistan Electric Power Company (PEPCO) and appoint management in distribution and generation companies, a move seen as enhancing a trend towards using the private sector.

The cabinet also apparently decided that a uniform electricity tariff rate would be applied throughout the country, a move aimed at ending line losses in the sector.

At the meeting it was also decided to disconnect power supply to defaulting consumers, who collectively owe over $3.5bn in unpaid electricity bills) 45 days after non-payment of bills, even if these involved ‘sensitive’ connections.

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