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ISLAMABAD, Mar 17 (APP):Pakistan is rapidly working to transform its energy sector, focusing on reducing reliance on expensive imported fuels and shifting to more sustainable sources like coal, wind, solar, and hydropower. By adopting the National Electricity Policy, the country aims to secure a cost-effective, reliable, and environmentally friendly energy future for all its citizens.
According to official documents, as of February 2024, the Power Division has made significant strides in meeting the nation’s energy needs. The government is focusing on increasing energy production through coal and renewable sources, while also modernizing the power grid and improving service delivery.
Key projects like the Integrated Generation Capacity Expansion Plan (IGCEP) aim to optimize energy production by prioritizing local and hydro resources. The government is also working to build a competitive electricity market and improve infrastructure to enhance long-term energy sustainability.
Key achievements during the one year of the government included completion of major transmission projects, including new 500kV lines at Balloki, Islamabad West, and Matiari-Moro-RY Khan, to improve energy distribution.
The 660MW Jamshoro coal-fired power plant is set to begin operations in 2025, while the Suki Kinari Hydropower Project and the Dasu Hydropower Project are boosting clean energy production. The country is also testing Competitive Trading Bilateral Contract Market (CTBCM), while a significant reform effort is underway to privatize electric distribution companies (DISCOs) and improve efficiency. The termination of power purchase agreements with five IPPs, saving Rs. 411 billion.
To assist consumers, the government introduced the Bijli Sahulat Package, providing flat rates during the winter months, along with subsidies for low-income households, Uniform Tariff Policy: Rs. 342 billion in subsidies to ensure fair pricing.
Relief Package: Rs. 50 billion subsidies for domestic consumers using up to 200 units. Digital advancements like the
Secured Metering System, Marginal Price application, and ERP financial module are also being implemented to enhance transparency and efficiency.
The Power Division has made significant financial investments in key energy projects to enhance country’s power infrastructure, including Rs. 31.97 billion for transmission upgrades and Rs. 34.09 billion for the Suki Kinari Hydropower Project. For the 2024-25 fiscal year, key energy projects will receive Rs. 13.8 billion for Suki Kinari and Rs. 12.93 billion for the Jamshoro coal project.
Renewable energy projects like the Suki Kinari Hydropower and solar energy initiatives are helping reduce electricity costs by replacing expensive imported fuels. These projects collectively generate over 3.5 billion units of clean energy annually, powering over 150,000 homes and ensuring long-term sustainability. The 660MW Jamshoro coal project, nearly complete, will further strengthen Pakistan’s energy security.
The government is advancing sector reforms, including the creation of an Independent System and Market Operator (ISMO) to oversee a more competitive electricity market.
Additionally, the privatization of DISCOs and the restructuring of energy organizations like NTDC and CPPA-G aim to boost operational efficiency and customer satisfaction.
Key policies such as the National Electricity Policy 2021 & Plan 2023-27 and the Power Generation Policy 2015 & ARE Policy 2019 are guiding these efforts. The government is also fostering private sector involvement in energy projects, encouraging partnerships and investments to meet the country’s growing energy demands.
The Power Division has actively engaged the public and stakeholders through workshops, conferences, and outreach programs, including the hydropower workshop with Agence Française de Développement (AFD), France on 6th November 2024 and 4th International Hydropower Conference with International Hydropower Association (IHA) in January 2025.
Feedback from stakeholders acknowledge the increasing share of renewables (35%), ensuring affordable and sustainable electricity. The shift to renewable energy is helping reduce costs, drive economic growth, and improve energy independence.
Pakistan is making substantial progress toward a more affordable, reliable, and sustainable energy system, with a clear focus on harnessing indigenous resources and private sector investments to secure the country’s energy future.