Owing to continued electricity crisis coupled with hike in power rates with each passing day, the government has decided to introduce amendments in the Power Policy 2002, which, however, will be implemented after the approval of Council of Common Interests (CCI) in the country.

In an apparent bid to control billion rupees worth subsidy in the power sector, all four provinces of the country including Azad Kashmir particularly the Private Power Infrastructure Board (PPIB) have so far approved fifteen amendments in the Power Policy 2002 as a result to which there will be a complete ban on diesel and furnace oil run power plants while price of hydel power will also witness a raise by Rs 0.42/unit after the implementation of amended power policy in the country.

More, an approval to install hydel, coal and gas run power plants have also been given in the proposed amendments while increase in the price of per unit of hydel power by Rs. 0.425/kWh without annual indexation; however, it may be reviewed every five years in order to determine if an increase in WUC is necessary. Similarly, in order to mitigate the exchange rate variation risk, cost adjustments for the Chinese Currency (RMB) has been allowed, similar to the adjustments already allowed for US Dollar, Pound Sterling,

Euro, and Japanese Yen. Besides this, due to serious reservations raised by the governments of Khyber Pakhtunkhwa and AJK to transfer these especial projects to the government of Pakistan after completion of concession period, it has so far been decided that ownership of hydel projects would be transferred to the respective Provincial Governments.