Federal Minister for Power Sardar Awais Ahmed Khan Leghari has urgently sought the Asian Development Bank’s (ADB) intervention to tackle Pakistan’s pressing debt repayment challenges and to help rebuild confidence among private investors, signaling a critical period for the nation’s energy infrastructure.
The appeal was made during a high-level meeting on Wednesday with an ADB delegation led by Leah Gutierrez, the Director General for the bank’s Central and West Asia Department. Minister Leghari welcomed the delegates and expressed gratitude for the ADB’s sustained engagement with Pakistan’s power sector.
Outlining the significant hurdles faced by the energy apparatus, the minister identified financing constraints, issues related to rupee cover, and high upfront costs as major impediments. He informed the delegation that the government is actively engaging local entities through the Pakistan Business Council to attract private capital into the power transmission sector and enhance market visibility.
Mr. Leghari shared details of ongoing reforms, highlighting progress on transmission projects aligned with the Indicative Generation Capacity Expansion Plan (IGCEP). He stated that excess power capacity, deemed unnecessary for future requirements, has been removed from planning, reaffirming the government’s commitment to not procure additional power and to transition towards a competitive electricity market.
The discussion also touched upon the nation’s green energy transition, with the minister noting that approximately 20 gigawatts of capacity have been shifted to clean sources. However, he stressed that this move has occurred without dedicated financing for the transition or for ensuring crucial grid stability, calling for serious, coordinated efforts backed by adequate funding.
To stimulate electricity consumption, the minister briefed the ADB officials on the newly introduced Energy Surplus Package, designed to boost demand and encourage higher power offtake by the private sector. A feasibility report aimed at attracting private investors is also expected to be presented soon.
Looking ahead, Sardar Awais Leghari revealed plans to implement smart meters across the country through a public-private partnership (PPP) model. This initiative will focus on integrating modern technology and improving overall efficiency within the distribution network.
In response, Ms. Gutierrez conveyed the ADB’s keen interest in supporting the smart metering initiatives, citing the Bank’s extensive expertise in PPP frameworks and technology integration. She also affirmed the ADB’s interest in assisting with the Integrated Energy Plan and serving as a transitional adviser, noting the bank’s capacity to provide end-to-end solutions.
The federal minister concluded the meeting by thanking the Asian Development Bank for its continuous partnership and appreciating its consistent support for Pakistan’s power sector reforms.