Pakistan seeks U.S. support for power sector reforms

December 09, 2025 (MLN): Pakistan has asked the United States to help mobilize support from major international financial institutions for its power-sector reforms, as Islamabad moves to cut losses, boost investment and push ahead with the privatization of state-owned distribution companies.

Federal Minister for Power Awais Ahmed Leghari conveyed the request to U.S. Ambassador Natalie Baker during a meeting in Islamabad, according to the press release.

He sought Washington’s assistance in engaging U.S.-based development partners and global lenders such as the IMF and the World Bank.

The support is expected to address structural hurdles that continue to slow the sector’s recovery.

Leghari highlighted Pakistan’s struggle with technical and commercial losses in distribution companies, slow recoveries and persistent circular debt challenges that have weighed on fiscal stability and deterred investment.

He said stronger backing from multilateral institutions would support ongoing reforms aimed at improving operational performance across the sector.

The minister also briefed Ambassador Baker on the government’s Surplus Power Package, which offers competitively priced electricity to industrial users.

He said U.S. support could help extend the package to greenfield industries, a move officials believe could spur industrial expansion and create export-oriented capacity.

Investment prospects for American firms, particularly in the transmission segment where Pakistan is seeking greater private participation, were also discussed.

Ambassador Baker expressed interest in emerging opportunities and acknowledged progress in efforts to reduce inefficiencies through targeted, data-driven interventions.

Leghari further urged U.S. investors to consider acquiring distribution companies currently up for privatization, arguing that private ownership is key to improving service delivery and reducing losses in one of Pakistan’s most financially strained sectors.

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