Pakistan Seeks US Support for Power Sector Reforms and Investment

Minister for Power Awais Ahmed Leghari held a meeting with US Ambassador to Pakistan Natalie Baker in Islamabad to discuss ongoing reforms in Pakistan’s power sector and explore potential investment and support from the United States and international financial institutions (IFIs).

Request for International Financial Support

Minister Leghari initiated the discussion by seeking Ambassador Baker’s support in engaging key US-based multilateral development partners, including the IMF and the World Bank. He specifically requested their assistance in two key areas:

• Structural Reforms: Facilitating structural reforms necessary for sustainable growth in the power sector.
• Sectoral Performance: Removing obstacles hindering improved performance in the energy domain.

Surplus Power Package and Investment Opportunities

The Power Minister briefed the Ambassador on the recently launched Surplus Power Package, designed to provide competitively priced electricity to industrial consumers. He urged US support in extending this package to greenfield industries to further stimulate domestic and foreign investment and industrial growth.

A core focus of the bilateral talks was investment, particularly in Pakistan’s power transmission sector, which Ambassador Baker expressed strong interest in. Leghari also requested US encouragement for investors to consider acquiring Distribution Companies (DISCOs) to enhance operational efficiency and service delivery across the distribution network.

Addressing Inefficiencies and Circular Debt

The meeting addressed critical issues facing the power sector, including:

• Reducing technical and commercial losses within the distribution system.
• Improving recovery rates for billed electricity.

Ambassador Baker commended the Power Ministry’s progress in managing circular debt through targeted, data-driven interventions and expressed appreciation for the overall reform agenda being pursued by the government.

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