ISLAMABAD: With growing unease over unaffordable energy tariffs, government is working on reducing return on equity (ROE) for its plants and offering improved prices to attract additional investments in hydrocarbon exploration and development. 

Informed sources said that government had already decided to scale down ROE for public sector power projects, including hydropower. Since most of ongoing projects' financials were linked to local and international debt, different financial models were being looked into. What could be a trade-off between revisions in return on government equity and dent in budget or financials of generation companies is yet to be examined. Government has also decided in principle to sell profitable energy sector entities like Oil and Gas Development Company Ltd, Pakistan Petroleum Ltd and Pakistan State Oil to Global Capable Companies (GCCs) through strategic divestment and management control.   On other hand, government is currently in talks with China for G2G engagement in exploration side, for which an offshore basin and benchmarking study has already been completed. Total of 24 offshore blocks have been identified for auction. To enhance electricity demand, seasonal electricity tariffs would be launched ahead of upcoming winter, encouraging automobile firms to rapidly grow electric vehicle segment and providing discounted financing for hybrid automobiles.