United Business Group (UBG) Chief Patron and former caretaker provincial minister, S.M. Tanveer, has expressed serious reservations about the National Electric Power Regulatory Authority (NEPRA)’s Indicative System Plan (ISP) 2025-35. Tanveer opposed the proposed plan, calling it flawed and financially burdensome, and said that NEPRA’s energy expansion plan will not solve the crisis but will make it more severe.
Tanveer highlighted the current electricity generation capacity in Pakistan, noting that it stands at 40,000 megawatts, while peak demand has fallen to 28,000 megawatts. Consumers have installed solar panels exceeding 45 gigawatts on their own, questioning the need for an additional 26,043 megawatts of production, which Tanveer deemed illogical.
He highlighted the financial impacts of the plan, which requires an investment of $57 billion in new production and transmission infrastructure. Tanveer warns that this will put pressure on an already overburdened grid, worsening the crisis instead of alleviating it. He pointed out that a significant portion of electricity bills, 52.6%, is due to capacity charges, and the plan will lead to unprecedented increases in electricity prices, making them unaffordable.
Transmission inefficiency has also been a major issue, with Tanveer noting that 18 to 20% of electricity generated is lost due to system weaknesses. Reducing these losses to the global standard of 10% could save Pakistan 19,000 gigawatt hours annually, which translates into savings of more than 570 billion rupees without further investment.
The planning model was also criticized, especially for including mega projects like Diamer Bhasha and Dasu as “necessary” without cost consideration. Tanveer cited historical cost increases, including a 3,300% increase in the Neelum Jhelum project and the cost of the Diamer Bhasha Dam reaching 2,400 billion rupees. While acknowledging the importance of the long-term sustainability of dams and nuclear energy, he called for strict cost controls on these projects.
Tanveer insisted that any additional costs be borne by the government through its Public Sector Development Program (PSDP) and not passed on to consumers. He advocated on behalf of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and UBG to reduce electricity prices from 33.38 rupees (12 cents) per unit to the global average of 9 cents, aiming to reduce it further to 6 cents by 2035.
He appealed to the Prime Minister and NEPRA to revise the ISP with accurate demand forecasts, transparent cost details, and cost caps on WAPDA-led projects. Tanveer warned that the industry stands on the brink of disaster, with exporters struggling to compete internationally, emphasizing that Pakistan cannot afford a plan that could lead to economic ruin.