ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday approved a revised 10-year national electricity procurement policy, slashing planned power purchases from 14,000 megawatts (MW) to approximately 7,000 MW.
The move is aimed at reducing reliance on expensive long-term contracts and transitioning toward a more market-driven energy model, the power minister announced.
Chairing a high-level meeting to review the Integrated Generation Capacity Expansion Plan (IGCEP) 2024–2034, the prime minister reaffirmed his government’s commitment to lowering electricity prices and enacting sustainable energy sector reforms.
“After providing relief to the people through a major tariff reduction, we are now moving forward with an effective strategy for long-term energy reform,” said PM Shehbaz, according to a statement from the Prime Minister’s Office.
He emphasized the timely completion of key infrastructure projects such as the Diamer Bhasha Dam and called for a robust system to fully utilize the country’s hydropower and water resources. “Any delay in energy projects is unacceptable,” he stated. “We are on track to establish a competitive electricity market in Pakistan, which will foster efficiency and drive tariffs down further.”
The revised IGCEP was re-evaluated at the prime minister’s direction, reflecting updated ground realities and future energy demands. The Ministry of Energy played a central role in restructuring the plan, with key highlights including:
- Removal of 7,967MW in high-cost projects, expected to save the country approximately $17 billion (Rs4.743 trillion) over the next decade.
- Shift in focus to indigenous and alternative energy sources, including solar, nuclear, and hydropower, to reduce dependence on imported fuels and conserve foreign exchange.
- Implementation of competitive bidding for future generation projects to ensure transparency and cost-efficiency.
- Gradual phase-out of capacity payments to power producers, aiming to ease the financial burden on the national grid and consumers.
The government’s push toward sustainable and competitive energy practices signals a significant policy shift intended to stabilize the sector and boost long-term economic resilience.
