Pakistan opens power sector to investors as reforms slash inefficiencies: Leghari

• Minister Awais Leghari highlights power sector reforms, invites Turkish investors in transmission, smart metering projects

• Says government fully committed to privatisation, rules out new state-owned power plants

• Claims power distribution inefficiencies cut by over 45pc in two years through structural reforms

• Says over $3b investment opportunities unveiled in metering and transmission infrastructure

• Competitive power market and ISMO introduced to boost transparency and efficiency

 ISLAMABAD: Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari on Saturday reaffirmed Pakistan's unwavering commitment to power sector privatization, saying sweeping structural reforms had begun delivering tangible results, with electricity distribution inefficiencies reduced by more than 45 percent over the past two years while opening up billions of dollars in investment opportunities.

Addressing Turkish investors at the Pakistan-Turkiye Business Conference, the minister said Pakistan had enacted legislation barring the government from establishing or purchasing any new electricity generation companies, underscoring its long-term commitment to a competitive and market-driven power sector.

He said competitive electricity markets had been introduced, while an Independent System and Market Operator (ISMO) had been established to ensure transparent and efficient dispatch of electricity across the national grid.

Leghari said the government had restructured power distribution companies and prepared them for privatization as part of a comprehensive reform agenda aimed at improving efficiency, transparency and service delivery.

The minister said the National Grid company had also been restructured and divided into two entities, enabling it to operate far more efficiently than at any previous time in the country's history.

Highlighting investment opportunities, he said the government planned to modernize and digitize electricity metering systems to enhance transparency, improve future planning, and curb power losses and electricity theft in distribution companies.

He said the metering programme alone offered investment opportunities exceeding US$1.7 billion over the next two to three years.

Leghari said transmission infrastructure, with its high utilization factor, represented another investment opportunity worth US$830 million over the next four years.

He said five electricity distribution companies that would not be privatized during the first phase were being prepared for large-scale investments in advanced metering systems, with individual project sizes ranging between US$100 million and US$150 million.

On the transmission side, the minister said the government had identified two investment clusters valued at US$518 million and US$312 million.

He said the first cluster, comprising four transmission lines, was scheduled for completion by 2029, while the second cluster, consisting of three transmission lines, would be completed by 2030.

Leghari said investors would have the flexibility to participate in individual transmission line projects.

He said techno-economic feasibility studies for the transmission projects had already been completed, while environmental assessments were under way. Bankable feasibility studies, he added, would be finalized by August.

The minister also highlighted Pakistan's growing focus on battery energy storage systems, saying such technologies were essential for ensuring grid stability and supporting the country's transition to a modern, efficient and reliable power sector.