'Power reforms cut inefficiencies by 45%'

Pakistan has undertaken far-reaching structural reforms in its power sector, reducing distribution inefficiencies by more than 45% over the last two years, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari said on Saturday.

Addressing Turkish investors at the Pakistan-Turkiye Business Conference, the minister said the government had restructured power distribution companies and prepared them for privatisation as part of a reform agenda aimed at improving efficiency, transparency and service delivery.

Leghari said Pakistan was fully committed to privatisation and had enacted legislation barring the government from establishing or purchasing any new electricity generation companies in the future.

He said competitive electricity markets had been introduced, while an Independent System and Market Operator (ISMO) had been established to ensure transparent and efficient dispatch of electricity across the national grid. The National Grid company had been restructured and split into two parts, operating more efficiently than at any time in the past, he added.

Highlighting investment opportunities, the minister said the government planned to modernise and digitise electricity metering systems to improve transparency, facilitate future planning and curb power losses and theft. He said metering systems alone offered investment opportunities exceeding $1.7 billion over the next two to three years.

Leghari said transmission lines, which have a very high utilisation factor, presented another $830 million investment opportunity over the next four years.

He said five electricity distribution companies that would not be privatised during the first phase were being prepared for large-scale investments in advanced metering systems, with individual project sizes ranging between $100 million and $150 million.

On the transmission side, he said the government had identified two investment clusters worth $518 million and $312 million. The first cluster, consisting of four transmission lines, was scheduled for completion by 2029, while the second cluster of three transmission lines would be completed by 2030. Investors would have the flexibility to participate in individual transmission line projects, he added.

Leghari said techno-economic feasibility studies for the transmission projects had already been completed, while environmental assessments were underway. Bankable feasibility studies would be finalised by August, he added.

The minister also highlighted Pakistan's growing focus on battery energy storage systems, saying such technologies were essential for ensuring grid stability and supporting the country's transition towards a modern, efficient and reliable power sector.