ISLAMABAD: Secretary of Power Division revealed that power production company-K-Electric is generating expensive electricity, predominantly from thermal power. During meeting of National Assembly's Standing Committee on Energy, Secretary of Power Division revealed that despite high power production cost, government continues to provide subsidies to K-Electric.

During session, it was disclosed that K-Electric reported loss of Rs 30 billion, with Karachi's electricity demand at 3,500 MW. Committee member Qamar-ul-Islam Raja pointed out that government bears financial losses through subsidies, meanwhile, in response, CEO of K-Electric clarified that government provide subsidies in form of tariff differentials. Dr. Tariq Fazal Chaudhry questioned efficacy of K-Electric's privatisation model, highlighting its failure to yield expected benefits. Secretary of Power Division confirmed that all of K-Electric's electricity is generated from thermal sources. Without government subsidies, cost per unit would rise significantly. KE's CEO mentioned that generating electricity from LNG would cost Rs 40 per unit, raising concerns about lack of benefits from K-Electric's privatisation, as emphasised by Qamarul Islam Raja.