Pakistan unveils $2.5bn power sector investment pipeline for Turkish investors

Pakistan has opened up more than $2.5 billion worth of investment opportunities in its electricity sector as the government presses ahead with reforms aimed at modernising the power system and expanding private sector participation.

Speaking at the Pakistan-Türkiye Business Conference, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari invited Turkish investors to participate in projects covering smart electricity metering, transmission infrastructure and battery energy storage systems.

He said the government planned to invest more than $1.7 billion over the next two to three years to modernise and digitise electricity metering across the country, describing the programme as a key step towards improving transparency, reducing power theft and strengthening long-term planning within distribution companies.

Leghari said another investment opportunity worth approximately $830 million had been identified in high-utilisation transmission infrastructure over the next four years.

He said the transmission programme comprised two investment clusters. The first, valued at $518 million, includes four transmission lines scheduled for completion by 2029, while the second, worth $312 million, consists of three transmission lines targeted for completion by 2030. Investors, he said, would be able to participate in individual transmission line projects.

The minister said techno-economic feasibility studies for the transmission projects had already been completed, environmental assessments were in progress and bankable feasibility studies were expected to be finalised by August.

He added that five electricity distribution companies not included in the first phase of privatisation were also being prepared for major smart metering investments, with individual projects estimated at between $100 million and $150 million.

Highlighting the broader reform programme, Leghari said Pakistan had reduced inefficiencies in electricity distribution by more than 45 percent over the past two years through structural changes across the sector.

He said power distribution companies had been restructured ahead of privatisation as part of efforts to improve operational efficiency, transparency and service delivery.

According to the minister, the government has also legislated against establishing or acquiring any new electricity generation companies, reinforcing its commitment to private sector participation in the power market.

Leghari said Pakistan had introduced a competitive electricity market and established an Independent System and Market Operator (ISMO) to ensure transparent and efficient dispatch of electricity across the national grid.

He added that the National Grid Company had been reorganised into two entities, resulting in significantly improved operational performance.

The minister also highlighted battery energy storage systems as an emerging area for investment, saying the technology would play an important role in maintaining grid stability and supporting Pakistan's transition to a more efficient, reliable and modern electricity network.