Pakistan is implementing 28 major power sector reforms and preparing to launch a competitive electricity market, Federal Minister for Energy Sardar Owais Ahmad Khan Leghari said on Thursday.
The government aims to move away from being the sole buyer of electricity, allowing direct market transactions, while improving governance, transparency, and financial stability across the sector.
Structural reforms and renegotiation of past Independent Power Producer contracts are addressing circular debt, and inefficient power plants are being phased out. Leghari acknowledged some previous IPP agreements “were not transparent.”
Around 19,000 megawatts of solar power are under development, making Pakistan one of the fastest-growing solar markets globally. Renewable energy now accounts for 55% of the national energy mix.
The minister said amendments to net-metering regulations, improved distribution company performance, and DISCO privatisation are part of the broader reform agenda, aimed at stabilising the power sector despite high fuel prices and rupee depreciation.
