Pakistan government has formally requested the Asian Development Bank (ADB) for financial assistance to manage severe debt repayment challenges within the power sector and to help build confidence among private investors.
This was informed by Federal Minister for Power Sardar Awais Ahmed Khan Leghari during a high-level meeting today. The appeal was made to a visiting ADB delegation led by Ms. Leah Gutierrez, the Director General for the Central and West Asia Department. Minister Leghari briefed the officials on the significant financial difficulties plaguing the sector, including financing constraints, issues related to rupee cover, and prohibitive upfront costs for new projects.
In an effort to attract private capital, the minister noted that the government is actively engaging with local investors through the Pakistan Business Council to improve market visibility and encourage investment in the power transmission sector. A detailed feasibility report aimed at prospective private investors is expected to be presented soon.
Detailing ongoing reforms, Mr. Leghari confirmed that the government has removed excess power capacity from its future plans and will not procure additional electricity, signaling a definitive shift towards a competitive energy market. He also cited progress on transmission projects aligned with the Indicative Generation Capacity Expansion Plan (IGCEP).
The minister drew attention to the country”s substantial but under-funded transition to clean energy. He stated that while approximately 20 GW of power had been shifted to cleaner sources, this was achieved without dedicated financing for the transition itself or for the necessary measures to ensure grid stability. He emphasized that serious, coordinated efforts backed by adequate financing are now critical to maintain the stability of the national grid.
To address current market dynamics, the minister mentioned the introduction of an “Energy Surplus Package” designed to increase electricity demand and encourage higher consumption by the private sector.
Furthermore, the government is planning a widespread rollout of smart meters through a public-private partnership (PPP) model, focusing on technology integration and enhanced efficiency.
Ms. Gutierrez expressed the ADB’s interest in supporting the smart metering initiative and the country”s Integrated Energy Plan. She highlighted the bank”s expertise in PPP frameworks and technology integration, noting that the ADB could serve as a transitional advisor. She added that the bank”s sovereign and non-sovereign operations function under a single platform, allowing it to provide comprehensive, end-to-end solutions.
The minister concluded by thanking the ADB for its continued partnership and consistent engagement with Pakistan’s power sector reforms.