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ISLAMABAD, May 22 (APP):Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, on Thursday met with a World Bank delegation led by Ms. Anna Bjerde, Managing Director of Operations, to discuss Pakistan’s ongoing reforms in the energy sector.
During the meeting, the Minister shared that Pakistan is set to introduce a competitive electricity market in the near future.
All preparatory work for this transition is being completed. He noted that an Independent System and Market Operator (ISMO) has already been established to manage the market operations, and experienced professionals are being appointed to ensure its effective functioning. The government will no longer act as the sole purchaser of electricity, said a statement.
Leghari highlighted that revenue recovery in the sector has significantly improved and emphasized the importance of targeting subsidies to the most vulnerable. He requested the World Bank’s support in implementing efficient, targeted subsidy systems. Ms. Bjerde endorsed this approach, stating the World Bank is fully committed to assisting Pakistan in this regard.
The Minister also revealed that Pakistan has a surplus of around 7,000 megawatts of electricity. He suggested offering this surplus to industries at marginal rates, making it the most affordable industrial electricity in the region. He stressed the need for support from the World Bank and other development partners to capitalize on this opportunity, which could significantly boost industrial production in the country.
Ms. Bjerde agreed with the proposal, noting that utilizing surplus electricity at marginal cost is far more beneficial than allowing it to go unused.
The Minister mentioned that during the winter season, electricity was already supplied at these lower rates without any subsidy, and the goal now is to extend this model throughout the year.
Further, he explained the government’s focus on digital transformation in the sector, from feeders to transformers, and stressed the importance of World Bank support for implementing smart technologies.
The delegation was briefed on the ongoing privatization of three electricity distribution companies, expected to conclude by the end of the year. He also spoke about restructuring efforts, including improved procurement systems, enhanced transparency, and measures to fast-track project completion.
The delegation was informed about the successful auctioning of old and non-operational government power plants.
The minister also introduced the Power Planning and Monitoring Company (PPMC), describing it as the technical backbone of the power sector where leading industry experts are engaged in strategic planning and oversight.
The World Bank Country Director Najy Benhassine praised the ongoing reforms and acknowledged the rapid progress being made. He announced that an additional $55 million in funding is being processed in recognition of the sector’s progress.