ISLAMABAD
Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari on Saturday said Pakistan had undertaken far-reaching structural reforms in its power sector, reducing distribution inefficiencies by more than 45 percent over the last two years.
Addressing Turkish investors at the Pakistan-Turkiye Business Conference, the minister said the government had restructured power distribution companies and prepared them for privatization as part of a comprehensive reform agenda aimed at improving efficiency, transparency and service delivery.
He said the reforms had yielded significant results, with inefficiencies in the distribution sector declining by over 45 percent in just two years.
Leghari said Pakistan was fully committed to privatization and had enacted legislation barring the government from establishing or purchasing any new electricity generation companies in the future.
He said competitive electricity markets had been introduced, while an Independent System and Market Operator (ISMO) had been established to ensure transparent and efficient dispatch of electricity across the national grid.
The minister said the National Grid company had been restructured and split into two parts and it’s operating in a much more efficient manner than we had seen anytime in the country in the past.
Highlighting investment opportunities, he said the government planned to modernize and digitize electricity metering systems to improve transparency, facilitate future planning and curb power losses and electricity theft in distribution companies.
He said metering systems alone offered investment opportunities exceeding US $1.7 billion over the next two to three years.
Leghari said the transmission lines, which have a very high utilization factor presented another $830 million investment opportunity over the next four years.
He said five electricity distribution companies that would not be privatized during the first phase were being prepared for large-scale investments in advanced metering systems, with individual project sizes ranging between US$100 million and US$150 million.
On the transmission side, he said the government had identified two investment clusters worth US$518 million and US$312 million.
The minister said the first cluster, consisting of four transmission lines, was scheduled for completion by 2029, while the second cluster of three transmission lines would be completed by 2030.
He said investors would have the flexibility to participate in individual transmission line projects.
Leghari said techno-economic feasibility studies for the transmission projects had already been completed, while environmental assessments were underway. He added that bankable feasibility studies would be finalized by August.
The minister also highlighted Pakistan’s growing focus on battery energy storage systems, saying such technologies were essential for ensuring grid stability and supporting the country’s transition towards a modern, efficient and reliable power sector.
