The government plans to save Rs4,743 billion (USD17 billion) over the next decade by excluding 7,967MW of expensive power projects and revising timelines under the Indicative Generation Capacity Expansion Plan (IGCEP) 2024–2034, the Prime Minister’s Office announced on Thursday.
Chaired by Prime Minister Shehbaz Sharif, the meeting in Islamabad reviewed progress on energy sector reforms aimed at bringing down electricity tariffs and ensuring long-term sustainability. The revised IGCEP will prioritise local and renewable energy sources—including solar, nuclear, and hydropower—over imported fuels, a shift expected to ease pressure on the country’s foreign exchange reserves.
The plan also aims to phase out capacity payments to power producers while promoting a free electricity market that would allow competitive generation and lower prices for consumers. Shehbaz Sharif stressed timely execution of major infrastructure, including the Diamer Bhasha Dam, and said delays in energy projects would not be tolerated.
The updated IGCEP will also introduce competitive bidding for future power generation projects, replacing direct contracting with market-based pricing mechanisms to deliver electricity at the lowest possible cost.
The meeting was attended by ministers from the power, economic affairs, petroleum, and information portfolios, along with senior officials.
