World Bank, IsDB briefed on power reforms
Sources said that Pakistan also took up the issue of decoupling the two policy loans amounting to $1.05 billion that the World Bank wants to approve together. photo: file
A delegation of the World Bank and the Islamic Development Bank (IsDB) held separate meetings with Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Monday to review ongoing reforms in Pakistan's power sector, with discussions focusing on sustainability, efficiency and financial viability.
According to an official statement, the World Bank delegation was led by Ousmane Dione, Vice President for the Middle East, North Africa, Afghanistan and Pakistan region, while Dr Rami Ahmad, Vice President (Operations) of the IsDB, also met the minister during the visit.
During the meetings, the minister outlined key reform measures being implemented across power generation, transmission and distribution. He said the government had excluded around 8,000 megawatts of costly and unnecessary power plants from the Indicative Generation Capacity Expansion Plan (IGCEP), resulting in estimated savings of about $17 billion in future costs for electricity consumers.
Leghari said inefficiencies in power distribution companies were being addressed, leading to improvements valued at Rs197 billion, while circular debt had been reduced by Rs780 billion. He added that imported coal-based power plants were being converted to run on local Thar coal to lower fuel costs and improve energy security.
The minister said efforts were under way to remove transmission bottlenecks and move towards full implementation of automated metering systems. He also referred to incentive packages for industrial and agricultural consumers aimed at stimulating electricity demand and rationalising tariffs.
According to the statement, captive power plants were being shifted to the national grid to improve overall system efficiency, while tariff incentives had been introduced to encourage the adoption of electric vehicles. Net metering regulations were also being reviewed to ensure greater equity.
On governance and market reforms, the minister said the wholesale electricity market was being liberalised to promote competition, and a five-year national electricity plan had been institutionalised. He added that key entities, including the national grid company, system operator and private power board, were undergoing restructuring.
The Power Planning and Monitoring Company (PPMC), a technical unit within the Ministry of Energy, was providing analytical support and monitoring reform progress, while information technology tools were being deployed to improve consumer services and regulatory oversight.
The minister stressed that the transition to cleaner energy sources was central to achieving long-term energy security and economic stability.
Dione and Dr Ahmad acknowledged the reform measures taken by the government and noted progress in improving efficiency and financial sustainability in the power sector. They reaffirmed their institutions' continued engagement with Pakistan on energy sector development.