The government has auctioned scrap from 61 outdated thermal power plants, earning Rs. 46.73 billion, slightly higher than the reserve price of Rs. 45.8 billion.
The auction was held in two phases—the first generating Rs. 8.47 billion for 31 units, and the second bringing in Rs. 38.25 billion for the remaining 30 units.
These non-functional plants, located in Jamshoro, Guddu, Sukkur, and other regions, were draining public finances through capacity payments, which are paid even when no electricity is produced.
The government clarified that no employees will be laid off. Instead, workers will be reassigned to other power distribution companies to continue contributing to the energy sector.
This move is expected to reduce unnecessary costs, ease the financial burden on electricity consumers, and streamline Pakistan’s power sector for better efficiency.