Govt Earns Rs 46B by selling Power Plants Scrap

Staff Report:

ISLAMABAD: Pakistan has earned Rs46.73 billion by selling scrap from 61 government power units, the Power Division said Friday, calling it an important step to cut financial losses.

The scrap came from old and non-functioning power generation plants that were draining billions of rupees every year. The official reserve price for the scrap from a total of 61 units was set at Rs45.82 billion by experts from the State Bank of Pakistan. The final sale brought in more than expected, officials said.

The auction was carried out in two phases. In the first phase, scrap from 31 power units was sold to private buyers for Rs8.48 billion, above the reserve price of Rs7.59 billion. In the second phase, scrap from 30 plants, including Jamshoro Block I and II, Guddu II, Sukkur, Quetta, Muzaffargarh Block I and II, and Faisalabad, fetched Rs38.26 billion, slightly higher than the reserve price of Rs38.22 billion.

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Contracts for both phases have been finalized with successful bidders, and payments have been secured.

Officials said that employees from these closed power plants are being moved to electricity distribution companies so their experience can still be used. This redeployment, they added, helps protect jobs while reducing government expenses.

These plants were closed for years but still costing taxpayers billions every year, the Power Division said. By selling their scrap and shifting employees, we are saving money and improving efficiency.

Authorities said the savings from this sale will reduce annual financial losses at the national level and allow better use of public resources.