Pakistan has slashed distribution inefficiencies in its power sector by more than 45% over the past two years, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari announced on Saturday. Speaking at the Pakistan-Turkiye Business Conference, he detailed extensive structural reforms aimed at improving efficiency, transparency, and service delivery.
Restructuring and Privatisation Drive
The minister stated that the government had restructured power distribution companies (DISCOs) and prepared them for privatisation. Legislation has been enacted to bar the government from establishing or purchasing any new electricity generation companies in the future. Competitive electricity markets have been introduced, and an Independent System and Market Operator (ISMO) was established to ensure transparent and efficient dispatch of electricity across the national grid. The National Grid company has been restructured and split into two parts, now operating more efficiently than ever.
Investment Opportunities in Metering and Transmission
Leghari highlighted that modernising and digitising electricity metering systems would curb power losses and theft. He said metering systems alone offer investment opportunities exceeding $1.7 billion over the next two to three years. Additionally, transmission lines, with a very high utilisation factor, present another $830 million investment opportunity over the next four years.
Five electricity distribution companies that will not be privatised in the first phase are being prepared for large-scale investments in advanced metering systems, with individual project sizes ranging between $100 million and $150 million.
Transmission Clusters and Timelines
On the transmission side, the government has identified two investment clusters worth $518 million and $312 million. The first cluster, consisting of four transmission lines, is scheduled for completion by 2029, while the second cluster of three transmission lines will be completed by 2030. Investors will have the flexibility to participate in individual transmission line projects, Leghari added.
Techno-economic feasibility studies for the transmission projects have already been completed, and environmental assessments are underway. Bankable feasibility studies will be finalised by August.
Focus on Battery Storage
The minister also emphasised Pakistan's growing focus on battery energy storage systems, describing them as essential for ensuring grid stability and supporting the country's transition towards a modern, efficient and reliable power sector.
