Summary
However, a sustained economic crisis has slashed power consumption, leaving the country with excess capacity that it needs to pay for.
Short of funds, the government has built those fixed costs and capacity payments into consumer bills, sparking protests by domestic users and industrial associations.
Four sources in the power sector told Reuters changes to contracts demanded included slashing guaranteed returns, capping dollar rates and moving away from paying for unused power.
Pakistan has already initiated talks on reprofiling power sector debt owed to China as well as negotiations on structural reforms, but progress has been slow.
Pakistan has also committed to stop power sector subsidies.