Energy Minister Leghari briefs World Bank, IsDB delegations on power sector reforms

Federal Minister for Energy Sardar Awais Ahmed Khan Leghari Monday met high-level delegations of the World Bank and the Islamic Development Bank (IsDB) to discuss ongoing reforms in Pakistan’s power sector.

The World Bank delegation was led by Usman Dion, while the IsDB delegation was headed by Dr Rami Ahmed. During the meeting, the delegations were briefed on the government’s reform agenda covering power generation, transmission and distribution.

Speaking on the occasion, Awais Leghari said that sustainable and effective reforms in the energy sector are among the government’s top priorities, stressing that partnership with international financial institutions is essential to address longstanding energy challenges.

The minister said consumers had received a potential relief of $17 billion after the removal of expensive power projects from the Indicative Generation Capacity Expansion Plan (IGCEP).

He added that inefficiencies in power distribution companies had been reduced by Rs197 billion, while the government’s reform policies had helped bring down circular debt by Rs780 billion.

Awais Leghari said imported coal-based power plants were being converted to local Thar coal, while work was underway to remove transmission system bottlenecks and implement automatic metering. He said relief packages for industrial and agricultural consumers would help increase electricity demand and improve system stability.

The minister said the transfer of captive power plants to the national grid would enhance overall efficiency, while special tariff relief for electric vehicles reflected the government’s commitment to an environmentally friendly energy policy. He added that the liberalisation of the wholesale electricity market would promote competition and transparency.

Highlighting future planning, Awais Leghari said the five-year national power plan provided a strong foundation for energy security, while the restructuring of energy institutions was improving efficiency and governance. He stressed that clean and renewable energy was key to Pakistan’s long-term energy future.

The delegations of the World Bank and the Islamic Development Bank appreciated the ongoing reforms and expressed support for the government’s efforts to strengthen the power sector.