Pakistan and Turkiye on Thursday signed three Memorandums of Understanding (MoUs) aimed at enhancing institutional collaboration, technical cooperation, and knowledge sharing in the power sector. The agreements were reached during high-level consultations held in Istanbul, where Turkish authorities expressed readiness to share technical expertise and institutional experience in electricity distribution privatisation, regulatory frameworks, and power sector governance in Pakistan.
High-Level Consultations in Istanbul
Adviser to the Prime Minister on Privatisation Muhammad Ali, along with Federal Minister for Power Sardar Awais Ahmad Khan Leghari, led a high-level consultative meeting with Turkish authorities in Istanbul at the invitation of Turkiye’s Minister of Energy and Natural Resources Alparslan Bayraktar. The strategic discussions focused on power sector privatisation, commercialization, investment promotion, and sectoral reforms.
Muhammad Ali led detailed discussions with Minister Bayraktar on Turkiye’s successful experience in privatizing electricity distribution companies, attracting private investment, and improving operational efficiency through private sector participation. He highlighted Pakistan’s commitment to implementing a transparent, competitive, and investor-friendly privatisation program in line with international best practices. He noted that the government is actively pursuing strategic transactions in the power sector and is engaging with international partners to benefit from successful global experiences. He emphasized that Pakistan is committed to creating an enabling environment for private investment through policy consistency, regulatory certainty, improved corporate governance, and commercially viable market structures.
Power Sector Reforms and Governance
Federal Minister for Power Sardar Awais Ahmad Khan Leghari contributed to discussions on power sector reforms, governance improvements, and regulatory developments underway in Pakistan’s power sector. He briefed the Turkish side on the government’s ongoing efforts to reform the power sector, including measures to improve the operational performance of distribution companies, reduce losses, strengthen governance, and enhance the overall efficiency of the electricity market.
The Turkish side expressed its readiness to share technical expertise and institutional experience in electricity distribution privatisation, regulatory frameworks, and power sector governance. Minister Bayraktar assured continued cooperation between relevant Turkish institutions, investors, and Pakistani authorities to facilitate knowledge exchange and explore investment opportunities. Both sides agreed to strengthen institutional collaboration and deepen cooperation in areas related to power sector privatisation, regulatory capacity building, governance reforms, and private sector participation.
Investment Opportunities and Cooperation
The two countries also discussed avenues for encouraging Turkish investors and energy companies to participate in Pakistan’s ongoing privatisation and energy sector transformation initiatives. The meeting concluded with a shared commitment to further strengthening Pakistan–Turkiye cooperation in the energy sector. Turkiye expressed support for Pakistan’s privatisation and reform agenda and welcomed opportunities for Turkish investors to explore participation in Pakistan’s power sector.
The agreements were signed as part of ongoing cooperation between the two brotherly countries in the energy sector, according to a press release issued by the Ministry of Energy (Power Division). The agreements reflect the shared commitment of both countries to deepen institutional collaboration, promote knowledge exchange, and strengthen technical cooperation across key areas of the power sector.
Details of the Signed MoUs
The MoUs were signed between Pakistani and Turkish energy sector entities: Independent System and Market Operator (ISMO) and Energy Exchange Istanbul (EPIAS); ISMO and the Turkish Electricity Transmission Corporation (TEIAS); and the Power Planning and Monitoring Company (PPMC) and the Turkish Electricity Distribution Corporation (TEDAS). The agreements establish formal frameworks for cooperation in areas including post-privatisation governance framework, electricity market development, ancillary services regulations formulation, power system operations, transmission planning, distribution sector management, digitalisation, capacity building, institutional strengthening, and the exchange of technical expertise.
Commitment to Learning from Turkiye’s Experience
Leghari welcomed the signing of the MoUs and noted that these partnerships represent an important step towards strengthening Pakistan’s energy institutions through collaboration with leading Turkish counterparts. He emphasised that Pakistan is committed to learning from Türkiye’s successful experience in electricity market reform, transmission system development, distribution sector modernisation, and the integration of advanced technologies into power sector operations. The signing of the MoUs shall pave the way for joint technical initiatives, expert exchanges, training programs, study visits, and collaborative projects aimed at advancing energy sector development in Pakistan.
