Pakistan outlines power sector reforms to World Bank, IsDB delegations

Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Monday held separate meetings with senior delegations from the World Bank and the Islamic Development Bank to discuss strategies for strengthening Pakistan’s energy sector.

The World Bank team was led by Ousmane Dione, Vice President for the Middle East, North Africa, Afghanistan and Pakistan Region, while Dr. Rami Ahmad, Vice President (Operations) of the IsDB, represented the Islamic lender. Both delegations explored collaboration on sustainable energy development.

Leghari briefed the delegations on reforms across generation, transmission, and distribution, noting that costly power plants had been excluded from the Integrated Generation Capacity Expansion Plan (IGCEP), saving approximately USD 17 billion in future consumer costs. He highlighted improvements in distribution efficiency worth Rs197 billion, a Rs780 billion reduction in circular debt, and the conversion of imported coal plants to use local Thar coal. Transmission bottlenecks are being addressed, and automated metering is being rolled out.

The minister also outlined measures to stimulate energy demand and rationalize tariffs, including incentive packages for industrial and agricultural consumers, integration of captive power facilities into the national grid, tariff incentives for electric vehicles, and updated net metering regulations. Market reforms include liberalization of the wholesale electricity market, institutionalized energy planning through a five-year national electricity plan, and restructuring of key institutions including the national grid company, system operator, and private power board. Analytical and IT support is being strengthened through the Ministry’s technical unit, PPMC.

Leghari stressed Pakistan’s transition to clean energy as essential for long-term economic growth and energy security.

Both Ousmane Dione and Dr. Rami Ahmad praised Pakistan’s progress, noting that efficiency improvements, financial sustainability measures, and sector reforms are enhancing investor confidence. They reaffirmed continued support for Pakistan in developing a reliable and sustainable energy system.