ISLAMABAD: The Minister for Power, Sardar Awais Ahmad Leghari has shared woes of the sector with the Asian Development Bank (ADB), top of which are constraints in financing, rupee cover and high upfront costs.
In a meeting with a delegation of the Asian Development Bank (ADB) led by Leah Gutierrez, Director General, Central and West Asia Department, the minister sought ADB’s support in addressing power sector debt repayment challenges, and in building confidence among private investors.
Leah Gutierrez shared that this was her first visit to Pakistan in her current role and appreciated the opportunity to engage with the Power Division.
The minister briefed the delegation on key challenges which the power sector is facing. He highlighted constraints in financing, issues related to rupee cover, and high upfront costs.
He added that the government is engaging local investors through the Pakistan Business Council to attract private investment in the power transmission sector and to improve market visibility.
Sharing ongoing reforms, the Minister highlighted progress on IGCEP-aligned transmission projects. He stated that excess power capacity, which was not required in the future, has been removed. He reaffirmed that the government will not procure additional power and is moving towards a competitive electricity market.
The minister noted that Pakistan has already transitioned around 20 GW to clean energy. However, despite this significant transition, no dedicated financing was provided for the clean energy shift, nor was funding made available to ensure grid stability. He said that the transition to renewable energy continued despite these limitations, but stressed that serious and coordinated efforts, supported by adequate financing, are now required to keep the grid stable.
The minister also shared details of the energy surplus package introduced to increase electricity demand and encourage higher power offtake by the private sector.
He requested ADB’s support on the financing side, particularly in addressing debt repayment challenges, and in building confidence among private investors. He informed the delegation that a feasibility report aimed at private investors will be presented soon. He also shared that the government is planning the rollout of smart meters through the private sector participation under PPP model, with a focus on technology integration and improved efficiency.
Gutierrez expressed ADB’s interest in supporting smart metering initiatives and highlighted ADB’s expertise in public-private partnerships and technology integration. She also showed interest in supporting the Integrated Energy Plan and in serving as a transitional advisor on PPP frameworks. She noted that ADB’s sovereign and non-sovereign operations operate under one platform, enabling the Bank to offer end-to-end solutions.
The minister thanked the Asian Development Bank for its continued support and partnership, and appreciated the Bank’s consistent engagement with Pakistan’s power sector reforms.
Copyright Business Recorder, 2025
