Govt stresses need for predictable regulatory regime in power sector

September 15, 2026 (MLN): The government emphasized the need for a clear, predictable and consistent regulatory framework in the power sector to facilitate private-sector participation, attract long-term investment and enhance efficiency and competition.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the first meeting of the Steering Committee on "Power Sector Regulatory Regime – Improvement & Reforms," constituted by the Prime Minister to review and advance reforms strengthening the sector's regulatory framework, said a press release issued.

The meeting was attended by Federal Minister for Power; National Coordinator, National Crisis Management Cell; Advisor to the Prime Minister on Privatisation; Minister of State for Finance and Revenue; Chairman, National Electric Power Regulatory Authority (NEPRA); and senior officers from relevant Divisions and Ministries.

The Committee reviewed the existing regulatory regime and discussed measures to improve the investment and operating environment in the power sector.

The meeting also took up the importance of aligning the regulatory and policy framework with international good practices, keeping in view Pakistan's institutional and market conditions, with the Committee stressing that reforms should support investment and sector efficiency while ensuring transparency, appropriate safeguards and regulatory certainty.

The Committee further discussed the need for coordinated efforts among relevant ministries, regulators and institutions to address policy and regulatory issues affecting the power sector, with the finance minister stressing the importance of a practical and time-bound reform process focused on tangible improvements in sector performance and investment outcomes.

The finance minister highlighted the potential of private-sector participation and investment in improving efficiency, promoting competition and supporting the development of the power sector, emphasizing the need for a comprehensive and sequenced roadmap with clear timelines and responsibilities.

The Committee also reviewed the role of the Technical Working Group in undertaking detailed analysis and developing focused proposals for its consideration, stressing the importance of structured engagement with investors and other stakeholders to obtain feedback and identify areas requiring regulatory improvement.

It was agreed that the Technical Working Group would undertake further work on the identified areas and submit focused proposals and recommendations to the Steering Committee, which will review and approve them, oversee implementation, and issue necessary policy directions to concerned ministries and agencies for timely implementation.

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