Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari stated on Saturday that Pakistan has implemented far-reaching structural reforms in its power sector, achieving a reduction in distribution inefficiencies by more than 45 percent over the last two years. He made these remarks while addressing Turkish investors at the Pakistan-Turkiye Business Conference.
Reforms and Privatization Drive
The minister explained that the government has 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 noted that the reforms have yielded significant results, with inefficiencies in the distribution sector declining by over 45 percent in just two years.
Leghari emphasized that Pakistan is fully committed to privatization and has enacted legislation barring the government from establishing or purchasing any new electricity generation companies in the future. Competitive electricity markets have been introduced, and an Independent System and Market Operator (ISMO) has been established to ensure transparent and efficient dispatch of electricity across the national grid. The National Grid Company has been restructured and split into two parts.
Investment Opportunities in Metering and Transmission
Highlighting investment opportunities, the minister said the government plans to modernize and digitize electricity metering systems to improve transparency, facilitate future planning, and curb power losses and electricity theft in distribution companies. According to Leghari, metering systems alone offer investment opportunities exceeding $1.7 billion over the next two to three years.
He added that transmission lines, which have a very high utilization factor, present another $830 million investment opportunity over the next four years. Five electricity distribution companies that will not be privatized during the first phase are being prepared for large-scale investments in advanced metering systems, with individual project sizes ranging between $100 million and $150 million.
Transmission Projects and Timelines
On the transmission side, the government has identified two investment clusters worth $518 million and $312 million. The first cluster, consisting of four transmission lines, is scheduled for completion by 2029, while the second cluster of three transmission lines will be completed by 2030. Investors will have the flexibility to participate in individual transmission line projects.
Leghari confirmed that techno-economic feasibility studies for the transmission projects have already been completed, while environmental assessments are underway. Bankable feasibility studies are expected to be finalized by August.
Focus on Battery Storage and Grid Stability
The minister also highlighted Pakistan’s growing focus on battery energy storage systems, stating that such technologies are essential for ensuring grid stability and supporting the country’s transition towards a modern, efficient, and reliable power sector.
