Pakistan, World Bank Discuss Long-Term Energy Sector Reforms and Partnership
ISLAMABAD: Federal Minister for Energy, Sardar Awais Ahmed Khan, convened an important meeting with a senior delegation from the World Bank, headed by Mr. Pankaj Gupta, the Regional Director for Infrastructure. The discussions centered around ongoing energy sector reforms in Pakistan, the privatization process, and prospects for long-term collaboration.
The Minister warmly received the delegation and expressed appreciation for the World Bank’s consistent support of Pakistan’s energy sector. He outlined the various challenges the country is facing in terms of energy infrastructure.
He noted that the government is actively encouraging public-private partnerships to attract investment and benefit from technical know-how. He emphasized that the privatization of power distribution companies is at a crucial juncture. The overarching goal, he said, is to ensure affordable and sustainable energy for future generations, which requires making tough but necessary decisions.
He also mentioned that when the current administration came into power, high electricity tariffs were a major issue. In line with the Prime Minister’s guidance, a strategic plan was executed to reduce reliance on furnace oil and imported energy sources. Enhancing grid stability and improving the efficiency of distribution companies are among the government’s top objectives. Furthermore, policies on net metering and solar power are being reviewed to better suit current demands.world bank explained
Mr. Pankaj Gupta shared that his involvement in Pakistan’s energy sector dates back to 1995. He underlined that energy continues to be a core area of focus for the World Bank and highlighted Pakistan’s significant potential for renewable hydropower, especially through the Indus River system. He recalled successful joint projects like Ghazi Barotha and Tarbela, reaffirming the Bank’s commitment to deepening this collaboration.
He added that the World Bank aims to work with Pakistan on a comprehensive, long-term development plan for the power sector, aligned with the Bank’s ten-year strategy for the country.
Mr. Gupta emphasized the importance of planning tools such as the Integrated Generation Capacity Expansion Plan (IGCEP) and Integrated Energy Planning (IEP) for accurate projections of future demand and resource availability. He stressed the need for careful project selection, appropriate location planning, and maintaining cost-efficiency. He also expressed support for NTDC’s involvement in the planning process and stated that the transmission network should remain under public control until it is fully ready for privatization.
He concluded by expressing optimism that the 40-year partnership between Pakistan and the World Bank will be further strengthened, particularly in the area of power transmission.
Both parties agreed to work together in crafting a long-term partnership strategy with NTDC to drive forward reforms and encourage sustainable investment in Pakistan’s energy sector.
