Prime Minister Shehbaz Sharif has stressed the need to accelerate the privatisation of electricity generation and distribution companies to address Pakistan’s long-standing energy crisis. He issued these directives during a review meeting on power sector reforms, stating that privatisation is essential to transform the energy sector into a competitive market and to ensure long-term stability and efficiency.
Senior government officials attended the meeting, where progress on ongoing power sector reforms was reviewed and next steps for implementation were discussed. The prime minister was briefed on various initiatives, including the privatisation of major power distribution companies and the expansion of the national power grid.
According to a statement issued by the Prime Minister’s Office, the government is moving forward with the privatisation of three key electricity distribution companies: Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). Officials informed the prime minister that Expressions of Interest (EOIs) would be issued soon, marking the next phase of the privatisation process.
The prime minister also reviewed major transmission projects, including the 500 kV Ghazi Barotha–Faisalabad transmission line. Officials stated that the approval process for the project’s PC-I is underway and work is expected to begin shortly.
As another significant initiative, Prime Minister Shehbaz Sharif proposed the introduction of Battery Energy Storage Systems (BESS) under a public-private partnership model. This initiative aims to modernise the power sector, enhance grid stability, and improve overall energy efficiency.
The meeting also discussed the transition of thermal power plants from imported coal to locally sourced Thar coal. Officials said that the technical feasibility study for this transition has been completed, while work is ongoing on constructing a dedicated railway line to transport Thar coal to power plants. This move is expected to reduce reliance on expensive imported coal and ease financial pressure on the energy sector.
In a positive development, officials reported a significant reduction in line losses within the power distribution system, a long-standing challenge for the sector.
The prime minister was also briefed on the operationalisation of a competitive electricity market, a key component of power sector reforms. Officials added that feasibility studies for Battery Energy Storage Systems have begun and that the Concept Clearance Proposal has already been approved.
The meeting was attended by Federal Minister for Finance Muhammad Aurangzeb, Minister for Economic Affairs Ahad Cheema, Minister for Power Division Awais Leghari, along with other senior officials.
