ISLAMABAD: Prime Minister Shehbaz Sharif has directed authorities to expedite the installation of smart electricity meters across the country and proceed with the auction of underperforming power generation companies (GENCOs) as part of ongoing reforms in the power sector.
Chairing a high-level review meeting on power sector reforms on Wednesday, the prime minister emphasised the need to ensure uninterrupted power supply to industries and provide relief to the public by improving efficiency and reducing losses.
According to a statement from the Prime Minister’s Office, Shehbaz Sharif also ordered that the auction of loss-making GENCOs be completed in its second and third phases without delay, and instructed that the process be broadcast live to ensure transparency.
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He further directed authorities to speed up the privatisation of distribution companies, advance the establishment of electric vehicle charging stations across the country, and begin work on proposed projects to improve the electricity transmission system.
The prime minister noted that the federal government had successfully solarised tube wells in Balochistan, a move expected to boost the province’s agricultural output. He also pointed to efforts made during the past winter to ease electricity prices for consumers.
Power sector reforms saved billions of rupees
During the meeting, officials informed the premier that the first phase of GENCO auctions had already brought in Rs9.05 billion for the national treasury, and subsequent phases were under way. The auctions are being broadcast live as part of a transparency initiative.
The meeting was also told that successful negotiations with 36 independent power producers (IPPs) are expected to save the government Rs3.69 trillion. Officials further revealed that plans were in motion to restructure the National Transmission and Dispatch Company (NTDC) by creating two new entities: the Energy Infrastructure Development Company and the National Grid Company.
In terms of electric vehicle adoption, an online portal has been activated to receive applications for setting up charging stations, with 120 applications submitted so far and 48 provisionally approved. The regularisation process for existing stations has also been completed.
The Power Planning and Monitoring Company (PPMC) has also been established to support energy sector reforms. Restructuring of the boards of several distribution companies has been finalised, officials said.
The meeting also reviewed progress on major transmission line projects in Matiari, Moro, Rahim Yar Khan, Ghazi Barotha, and Faisalabad. Local and international investors have expressed interest in financing these initiatives.
Officials further briefed the prime minister on plans to eliminate Rs2.4 trillion in circular debt over the next six years.
In an effort to promote energy efficiency, the government is working with banks to offer easy loans for the purchase of energy-efficient fans, which could help middle-income households cut electricity bills. A roadmap for constructing energy-efficient buildings is also ready, with provincial governments consulted on its implementation.
The meeting was attended by federal ministers, senior advisors, and top officials from the power and finance sectors.