Pakistan and Türkiye have agreed to deepen cooperation on power sector reforms, with Ankara offering technical assistance as Islamabad advances plans to overhaul and eventually privatize state-owned electricity distribution companies. The understanding was reached during high-level talks in Istanbul between Pakistan’s Minister for Power Sardar Awais Ahmad Khan Leghari, Adviser on Privatization Muhammad Ali, and Turkish Energy Minister Alparslan Bayraktar, according to Pakistan’s Power Division.
IMF-Backed Reforms Drive Privatization Push
Pakistan is pursuing sweeping reforms of its power sector under a $7 billion International Monetary Fund (IMF) program. The program aims to reduce the sector’s mounting circular debt, improve governance, and attract private investment. The circular debt has long strained public finances and undermined investment in the energy sector.
“Türkiye offered technical assistance for Pakistan’s energy sector reforms and agreed to share its experience in privatization and electricity distribution,” the Power Division said in a statement after the meeting. “The Turkish energy minister also assured closer engagement between Pakistani authorities and Turkish companies, while Turkish private investors will be encouraged to explore investment opportunities in Pakistan’s power sector,” it added.
Challenges in Pakistan’s Electricity Sector
Pakistan’s electricity sector has been burdened by high transmission and distribution losses, electricity theft, weak bill recoveries, and a growing circular debt. These issues have undermined investment and strained public finances. The government is committed to addressing these challenges through reforms and privatization.
Turkish Model as a Blueprint
Türkiye has privatized electricity distribution across most of the country over the past two decades. Pakistani officials have cited this process as a potential model as Islamabad seeks to improve service delivery, reduce losses, and attract private investment into the sector. Leghari reaffirmed the Pakistani government’s commitment to a transparent and investor-friendly privatization process, noting that reforms are under way to improve governance in distribution companies and strengthen the regulatory framework.
