ISLAMABAD, Dec 17 (APP): Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Wednesday sought the Asian Development Bank’s (ADB) support in addressing power sector debt repayment challenges, and in building confidence among private investors.
The minister expressed these views during a meeting with a high-level ADB delegation led by Ms. Leah Gutierrez, Director General, Central and West Asia Department, which called on him here.
Welcoming the delegation, the minister thanked ADB for its continued partnership with Pakistan’s power sector. Ms. Leah Gutierrez, on her first visit to Pakistan in her current role, appreciated the opportunity to engage with the Power Division and discuss reform priorities.
Briefing the delegation, the minister highlighted key challenges facing the power sector, including financing constraints, issues related to rupee cover, and high upfront investment costs. He said the government was actively engaging local investors through the Pakistan Business Council to attract private investment in the power transmission sector and to enhance market visibility.
Sharing details of ongoing reforms, the minister highlighted progress on IGCEP-aligned transmission projects, while excess power capacity not required in the future had been removed. He reaffirmed that the government would not procure additional power and was transitioning towards a competitive electricity market.
The minister noted that Pakistan had already shifted around 20 gigawatts of power generation 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.
He also shared details of the Energy Surplus Package introduced to increase electricity demand and encourage higher power offtake by the private sector.
Seeking ADB’s support, the minister particularly emphasized assistance in resolving power sector debt repayment challenges and in boosting investor confidence. He informed the delegation that a feasibility report aimed at private investors would be presented soon. He further said the government planned to roll out smart meters through private sector participation under a public-private partnership (PPP) model, with a strong focus on technology integration and efficiency improvement.
Ms. Leah 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.