Islamabad: The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, chaired the second meeting of the Steering Committee on Power Sector Regulatory Regime to assess progress and discuss reforms aimed at enhancing the power sector’s regulatory framework. The meeting, held at the Finance Division, focused on promoting efficiency, investment, competition, and private-sector involvement.
According to Press Information Department, the Committee received updates on Pakistan’s power sector transformation and deliberated on significant industry changes, such as increasing solarization and shifting demand patterns. The Finance Minister highlighted the need for a regulatory framework that adapts to technological advancements while supporting efficiency, investment, and consumer interests.
Key challenges discussed included legacy capacity obligations, evolving grid-demand patterns, service quality, and investment constraints. The discussion emphasized improving regulatory predictability, optimizing subsidy targeting, and enhancing the investment climate to foster a more efficient and competitive power sector.
The Finance Minister underscored the importance of developing a market structure that incentivizes efficiency and service quality, while enabling competition and private-sector participation. The Committee explored the potential for separating network and supply functions, with distribution network operators focusing on network efficiency and maintenance.
The meeting also examined the necessity for a transparent regulatory regime with appropriate risk allocation and clear licensing arrangements. The Finance Minister emphasized reforms aimed at financial sustainability, reducing inefficiencies, and fostering long-term private investment.
Opportunities from the changing power sector landscape, such as battery energy storage systems, were also considered. The Committee discussed potential commercial activities by distribution companies to improve asset utilization and consumer benefits, stressing the need for regulatory frameworks with appropriate safeguards.
The meeting further addressed measures for effective government support targeting, focusing on financial sustainability, improved service quality, and consumer affordability. The Finance Minister reiterated the need for regulatory flexibility to accommodate technological changes while encouraging efficient investment and private-sector participation.
The Committee was briefed on the Technical Working Group’s proposed program, including its Terms of Reference and tariff methodology work. The Finance Minister directed a consultative process involving relevant stakeholders to develop practical recommendations.
Senator Muhammad Aurangzeb emphasized an iterative, evidence-based reform process aligned with the goal of creating a financially sustainable and competitive power sector. The meeting included participation from Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance, the Adviser to the Prime Minister on Privatization Muhammad Ali, and senior officials and stakeholders.