Islamabad, 19 May, 2025: Power Plant Auctions are underway once again as part of Pakistan’s broader efforts to improve efficiency and reduce losses in the country’s power sector.
The government is moving ahead with the second round of auctions for outdated and non-operational state-run power stations, aiming to streamline operations and reduce the financial burden caused by idle infrastructure.
Second Phase of Auctions Commences
According to the Power Division, the second phase of Power Plant Auctions is being held today, featuring three major thermal power stations with a combined generation capacity of 2,362 megawatts.
These include the 880 MW Jamshoro Thermal Power Station, the 1,350 MW Muzaffargarh Thermal Power Station, and the 132 MW Steam Power Station in Faisalabad.
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Officials confirmed that the auction process will continue throughout the day, with bids being invited from local and international investors.
The sales are being managed under a larger programme focused on retiring inefficient assets and promoting cost-effective energy production.
Part of Long-Term Energy Strategy
The Power Division explained that this move is part of the ongoing reform strategy to reduce circular debt and improve overall system performance.
By selling off plants that are no longer economically viable, the government hopes to attract private investment and reduce the operational strain on the national grid.
In the first round of Power Plant Auctions, held earlier, seven aging thermal plants were successfully sold.
The total value of winning bids exceeded Rs. 9 billion, indicating strong investor interest in repurposing or redeveloping these assets.
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Government Eyes Efficiency Through Privatization
Officials believe that the continued sale of outdated power plants will pave the way for a more efficient energy sector.
With fewer non-performing assets draining resources, the government can focus on renewable projects and modern infrastructure.
As the second phase of Power Plant Auctions continues, authorities are optimistic that this strategy will contribute significantly to long-term energy sustainability in Pakistan.
