Islamabad, Feb 8: Prime Minister Shehbaz Sharif has reaffirmed the government’s commitment to reducing electricity tariffs for both domestic and industrial consumers, highlighting the ongoing positive outcomes of the power sector reforms. During a review meeting, the Prime Minister expressed satisfaction with the progress made so far but emphasized the need for quicker implementation to ensure that electricity remains affordable and environmentally sustainable.
The Prime Minister noted that renegotiations with independent power producers (IPPs) are playing a significant role in reducing electricity costs, benefiting both consumers and the national treasury. He also vowed to intensify efforts to combat power theft, a critical issue contributing to losses across distribution companies.
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The meeting was briefed on the performance of power distribution companies, with recovery rates improving to 93.26% by December 2024, a result of ongoing reforms and anti-theft initiatives. Updates were also shared on vital infrastructure projects, such as the 500kV Matiari-Moro-Rahim Yar Khan and Ghazi Barotha-Faisalabad transmission lines. Additionally, progress was reported on plans to dissolve the National Transmission and Dispatch Company (NTDC) and establish the Energy Infrastructure, Development, and Management Company (EIDMC).
Despite these advancements, several major reforms in the power sector remain stalled. The Power Division has yet to implement over a dozen key initiatives assigned by the Prime Minister. One such delay involves the conversion of three Chinese coal-fired power plants—Sahiwal, Port Qasim, and Hub— to locally mined Thar coal, as well as securing Thar coal supplies for the Lucky Power Plant and Jamshoro power plant.
The privatization of government-run power generation companies (GENCOs), including Nandipur and Guddu 747, has also lagged, with a deadline of January 1, 2026, looming. Similarly, privatization plans for electricity distribution companies, such as IESCO, GEPCO, and FESCO in the first phase, and LESCO, MEPCO, and HAZECO in the second phase, have seen limited progress. The privatization of SEPCO, HESCO, and PESCO under long-term concession agreements has also stalled.
Other critical initiatives, such as the auction of dead assets from the power sector and the integration of GENCO employees into distribution companies, remain unresolved. Efforts to shift captive power plants (CPPs) to the national grid and operationalize a competitive electricity market have also been delayed. Furthermore, the issue of unpaid electricity bills from Azad Jammu and Kashmir (AJK) and former Federally Administered Tribal Areas (FATA) has yet to be addressed.
The Prime Minister warned that continued delays in these essential reforms could hinder the achievement of a stable and affordable electricity supply. He urged all relevant authorities to expedite the completion of these reforms and projects within their established timelines to avoid further inefficiencies and financial challenges, including the rising circular debt, which has already surpassed Rs2.5 trillion.
