Islamabad: The Pakistani government has embarked on a comprehensive reform initiative in the power sector, spearheaded by the National Task Force, which includes key representatives from various institutions, including the army. These reforms aim to address the escalating circular debt, improve power availability, and foster a competitive market environment.

According to Ministry of Information and Broadcasting, Minister for Power Awais Leghari outlined the task force’s strategy, which is centered on economic development and enhancing the populace’s well-being through sectoral improvements. The circular debt in the power sector, which has ballooned to $9.5 billion, underscores the urgent need for these reforms.

Minister Leghari highlighted several key components of the reform agenda, including the reduction of electricity prices, enhancement of power supply reliability, and the establishment of a stable competitive power market. Furthermore, the government has terminated certain contracts with Independent Power Producers (IPPs) as part of its strategy to revamp the sector.

Additional measures include the privatization of power distribution companies to improve efficiency and transparency in power delivery. A new power market structure is also on the cards, which aims to diminish reliance on a single distributor, thereby catalyzing a more diversified and resilient energy infrastructure.