Power sector overhaul gets green light from PM

June 26, 2025 (MLN): To enhance the country’s power transmission and distribution system, work on key projects has been ordered to begin without delay following directives from Prime Minister Muhammad Shehbaz Sharif.

During a high-level meeting held in Islamabad to review the progress of ongoing reforms in the power sector, the Prime Minister emphasized the need to accelerate projects aimed at upgrading the power transmission and distribution system.

Top priority, he noted, is being given to ensuring uninterrupted electricity supply to industries and providing relief to the public through low-cost and environmentally friendly energy initiatives, as per the press release issued.

He instructed officials to fast-track the privatization of power distribution companies and complete the second and third phases of auctioning loss-making generation companies.

The Prime Minister also ordered the swift installation of smart meters and requested a report upon completion of the process.

Further, he stressed the importance of expanding electric vehicle infrastructure, directing the speedy establishment of EV charging stations across the country.

He highlighted that the federal government has completed the solarization of tube wells in Balochistan, a move expected to boost the province’s agricultural output.

A detailed briefing during the meeting outlined ongoing power sector reforms across generation, transmission, and distribution.

Officials reported that the first phase of the auction of obsolete and loss-making generation companies brought in Rs9.05 billion for the national exchequer.

They also noted successful negotiations with 36 Independent Power Producers (IPPs) on electricity tariffs, which are projected to save Rs3.69 trillion.

It was further shared that efforts are being made to maintain uninterrupted power supply to industries, with the aim of enhancing industrial output, exports, and foreign exchange inflows.

The meeting also reviewed the active establishment of EV charging stations, reaffirming the government’s commitment to green energy initiatives.

The Power Planning and Monitoring Company has been established to support power sector reforms, while most distribution companies have had their administrative boards restructured and made fully operational.

Additionally, a plan is in progress to offer easy bank loans for energy-efficient fans, and a comprehensive roadmap has been developed for the construction of energy-efficient buildings.

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