In line with directives from the Prime Minister, Pakistan's National Task Force has launched comprehensive reforms in the power sector. Headed by Energy Minister Awais Leghari, the Task Force includes representatives from the military and key government agencies.
Energy Minister Awais Leghari stated that the reforms target significant goals: lowering electricity costs, improving supply reliability, and establishing a competitive power market. Given the sector's mounting circular debt, which has reached $9.5 billion, the need for reform is crucial. As part of these measures, the government has begun reviewing agreements with several Independent Power Producers (IPPs), canceling outdated contracts to lower expenses and electricity tariffs.
In addition to price reductions, the government is focused on strengthening energy infrastructure and is advancing plans to privatize distribution companies, aiming to bring more efficiency and transparency to electricity delivery. The introduction of a new power market structure, where consumers can choose from packages offered by various companies, is also in progress. This open market model, supported by the formation of an Independent System and Market Operator (ISMO), will reduce dependence on a single distributor and offer consumers more options for electricity purchase.
Experts in the energy sector expect these reforms to reduce electricity costs and positively impact the economy by increasing transparency and modernization within the power sector.
