US help sought for energy reforms

Minister pitches surplus power offer for industrial revival, greenfield projects

ISLAMABAD:

Federal Minister for Power Awais Ahmed Leghari on Monday met US Ambassador to Pakistan Natalie Baker to discuss ongoing reforms, future collaboration and investment opportunities in Pakistan's power sector.

During the meeting, the minister sought the ambassador's support in engaging US-based multilateral development partners and international financial institutions, including the IMF and the World Bank, to help remove obstacles hindering the sustainable growth of Pakistan's power sector. He said the assistance of development partners was essential for implementing structural reforms and improving sector performance.

Leghari briefed the Baker on the recently launched Surplus Power Package and its potential to boost economic activity by offering competitively priced electricity to industrial consumers. He also requested US support in extending the package to greenfield industries to encourage investment and accelerate industrial growth.

The meeting also reviewed ongoing efforts to address inefficiencies in the power distribution system. These included reducing technical and commercial losses and improving recoveries. Envoy appreciated the continued reforms of the power ministry and commended the government's progress in reducing inefficiencies and managing circular debt through targeted, data-driven interventions.

Investment opportunities for US investors were also discussed, particularly in Pakistan's power transmission sector. The minister said there was significant scope for private-sector participation in transmission development. The Ambassador expressed keen interest in these opportunities.

Privatisation of power distribution companies also came under discussion. Leghari sought the ambassador's support in encouraging US investors to consider acquiring DISCOs currently being offered for privatisation. He said private-sector participation remained essential for improving operational efficiency and strengthening service delivery.

Separately, Leghari met Frederic Ribieras, Chief Executive Officer of GE Vernova's hydropower business, to discuss Pakistan's clean energy transition, private-sector investment and collaboration in hydropower and energy storage.

The minister reiterated that the government was shifting towards a market-driven power sector and said future power generation would be led by the private sector as the government would not procure power in future. He highlighted existing transmission constraints and invited global investors to explore business-to-business opportunities. He said companies such as GE Vernova could serve as strong technical and investment partners.

The minister said Pakistan was pursuing a least-cost energy strategy and had recently achieved nearly 56% clean energy generation. He stressed the need for Battery Energy Storage Systems due to challenges in wind power expansion. Ribieras suggested pumped-storage hydropower as another option. The minister welcomed the proposal and said the government was open to reviewing all least-cost solutions.