Pakistan showcases power sector reforms, seeks EU investment in energy overhaul

ISLAMABAD: Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Monday highlighted sweeping reforms in Pakistan’s energy sector, inviting European investors to participate in privatisation and infrastructure development initiatives.

During a meeting with a visiting delegation from the European Union, the minister outlined a comprehensive transformation plan centred on four key priorities: digitisation of the national grid, deployment of smart metering systems, expansion and modernisation of transmission networks, and integration of large-scale battery storage solutions.

He also emphasised plans to promote local manufacturing of power sector equipment, aimed at reducing reliance on imports and strengthening domestic industrial capacity.

The minister informed the delegation that the government is advancing the privatisation of electricity distribution companies (DISCOs), offering attractive opportunities for European firms to participate in the bidding process.

Highlighting structural reforms, Leghari said the government is phasing out outdated and inefficient residual fuel oil (RFO)-based power plants. He noted that by excluding around 7,000 megawatts of costly capacity from the Indicative Generation Capacity Expansion Plan (IGCEP), Pakistan has achieved estimated savings of $17 billion.

The EU delegation, which included Thouraya Trimou and Ramunas Karoblis, appreciated the reform measures and acknowledged their positive impact on improving the investment climate.

Delegates observed that the ongoing reforms have enhanced investor confidence, encouraging several European stakeholders to explore financing and participation in Pakistan’s evolving power sector projects.

The engagement underscores Islamabad’s efforts to attract foreign investment and modernise its energy infrastructure as part of a broader strategy to ensure sustainability, efficiency and long-term energy security.