Canada expresses support for Pakistan’s energy reforms and regional peace efforts

ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari met Canadian High Commissioner Tarik Ali Khan to discuss cooperation in the energy sector and potential investment avenues, according to an official statement issued on Wednesday.

The statement said the two sides also discussed recent regional developments. During the meeting, the Canadian envoy appreciated Pakistan’s role in promoting a ceasefire during the recent US-Israel-Iran tensions and thanked the government. Leghari, in turn, urged Canada to play an active part in efforts aimed at securing lasting peace in the region.

Energy mix and reform agenda

On the energy sector, the minister said Pakistan sourced around 55% of its energy mix from clean sources last year, describing it as a reflection of the government’s policy direction. He said hydropower capacity would be expanded further to help provide electricity that is both affordable and sustainable.

Leghari also said the government is working to cut reliance on imported coal. According to the statement, plans are under review to convert imported coal-fired power plants to local coal, while environmental studies related to the proposal are close to completion. If the studies find the move feasible, the transition will be carried out.

The minister said the government is also encouraging utility-scale Battery Energy Storage Systems (BESS), while private sector participation in the area is being promoted. He added that a mechanism is being developed for the safe disposal of solar panel waste.

The high commissioner welcomed these measures and said that as electric vehicle use increases, planning for battery disposal will also be important.

Tariff changes and investment interest

Leghari said a time-of-use tariff would be introduced soon to encourage more efficient electricity consumption. He added that industrial consumers would be able to benefit from lower costs if they use more electricity during designated hours.

He said the power sector had been facing serious difficulties about two years ago, but the government withdrew from projects it considered unnecessary. He added that reforms are now being pursued on the basis of a least-cost and sustainable model.

According to the statement, the Canadian high commissioner said Canadian company JCM is interested in Pakistan’s energy sector. Leghari responded that Pakistan offers significant investment opportunities, particularly in a competitive electricity market and in transmission infrastructure, and said the government welcomes foreign investment. He also appreciated Pakistan's role in promoting a ceasefire amid recent US-Israel-Iran tensions and thanked the government.

The meeting reflected Pakistan’s effort to present its ongoing power sector reforms to international partners while seeking greater foreign participation in energy and infrastructure projects.