Prime Minister Shehbaz Sharif has ordered faster privatisation of Pakistan’s power sector. He called the move essential for long-term energy stability. The directive was issued during a high-level review meeting in Islamabad.
He stressed that a competitive electricity market offers the only sustainable solution. According to him, privatisation can reduce inefficiencies and financial losses. Therefore, authorities were instructed to remove delays immediately.
Focus on Competitive Electricity Markets
The prime minister emphasized market-driven reforms in electricity distribution and generation. He noted that competition would improve service quality and pricing discipline. As a result, consumers could benefit from a more reliable power supply.
Officials briefed the meeting on reform progress across the sector. They discussed power generation, transmission upgrades, and privatisation plans. Meanwhile, ongoing restructuring efforts were also reviewed in detail.
DISCOs and GENCOs Privatisation Plans
The meeting was informed that three distribution companies are set for privatisation. These include IESCO, FESCO, and GEPCO. Expressions of Interest will be issued shortly.
This step aims to attract private investment and managerial expertise. Consequently, operational efficiency is expected to improve over time. The government sees this phase as critical for broader reform success.
Transmission Upgrades and Grid Strengthening
Prime Minister Shehbaz ordered priority completion of key transmission projects. He highlighted the importance of a modern and resilient national grid.
Officials confirmed that the PC-1 for the 500 kV Ghazi Barotha–Faisalabad transmission line is under approval. Once completed, the project will strengthen grid capacity significantly. Moreover, it will help reduce system constraints.
Battery Energy Storage and Coal Conversion
The prime minister also directed the launch of a Battery Energy Storage System. The project will follow a public-private partnership model. Strong private sector participation has been encouraged.
Concept clearance for the battery project has already been approved. A feasibility study is currently underway. Additionally, technical feasibility for converting power plants to Thar coal has been completed.
Work on a railway line for Thar coal transportation is also in progress. This shift aims to reduce reliance on imported fuel.
Signs of Reform Progress
Officials reported a decline in line losses compared to last year. Sustained reform efforts contributed to this improvement. Therefore, authorities remain confident about continued progress.
Overall, the government believes fast-track privatisation will modernise the power sector. It also aims to ensure financial stability and long-term energy security.
