Pushing for power reforms

The prime minister’s recent announcement of the formation of a high-level task force aimed at implementing structural reforms in the power sector could be a significant step towards addressing long-standing financial and operational challenges in the sector. The initiative will be led by Power Minister Sardar Awais Ahmad Khan Leghari and primarily aims to mitigate the financial burden on the federal government while striving to establish a more efficient, competitive and self-sustaining power market.

The inclusion of former caretaker federal energy minister Muhammad Ali as the co-chairman of the task force, along with Lt Gen Muhammad Zafar Iqbal as the national coordinator, brings experienced leadership to the initiative. Apart from his role as a caretaker minister, Ali also played a role during the PTI government by helping it renegotiate deals with IPPs, making him a somewhat apolitical pick, although there are bound to be some critics of the decision to appoint a serving army officer to what is essentially a civilian role.

The task force’s responsibilities include recommending measures for financial and operational sustainability; developing an efficient power market; and addressing the circular debt stock issue, which underscores the comprehensive approach the government is adopting to overhaul the power sector. The decision to empower the task force to oversee the implementation of its recommendations highlights the government’s determination to ensure that the reforms are effectively executed.

While the task force marks a positive step forward, it will be imperative for the government to ensure transparency, accountability and inclusivity throughout the reform process. The success of the task force will depend on its ability to effectively address the challenges that have plagued the power sector for years and to deliver tangible results that benefit both the industry and the citizens. At the bare minimum, if the task force can come up with a workable solution to the circular debt that does not involve adding to the financial burden on consumers, it may well make national heroes out of its members.