IBA Karachi Hosts Session on Pakistan Power Reforms

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The Institute of Business Administration (IBA) Karachi, in collaboration with the Ministry of Energy (Power Division), hosted a landmark session on the ‘Pakistan Power Reforms Project’ at the School of Business Studies (SBS), IBA. The event featured a keynote address by the Federal Minister for Power, Sardar Awais Ahmad Khan Laghari, which was attended by students, faculty members, economists, members of the media, and the general public.

In his address, the Federal Minister for Power outlined the critical fault lines in Pakistan’s power sector and proposed a comprehensive roadmap for reforms aimed at enhancing the efficiency of the sector. He emphasized that these reforms would be instrumental in catalyzing industrial and economic growth in the country. The session was followed by an interactive panel discussion featuring the Minister and IBA’s Executive Director, Dr. S. Akbar Zaidi, moderated by entrepreneur Mr. Junaid Iqbal.

During his speech, the Minister highlighted the complexities of implementing structural reforms, noting that the outcomes are expected to become visible within the coming months. He elaborated on the Power Division’s focus on improving governance within distribution companies and revamping transmission infrastructure to boost efficiency and reduce power losses. Additionally, the Minister unveiled plans to stimulate industrial demand and accelerate economic growth through targeted policy interventions.

Addressing the issue of tariffs, the Minister identified front-loaded debt repayments as a major contributor to high capacity charges. He suggested that by employing strategic policy levers, the government can rationalize prices across the board. He further stressed the need to transition to a competitive market regime where electricity can be traded between buyers and sellers, thus incentivizing efficiency and moving away from the current cost-plus model centered around a single-buyer framework.

In a significant policy announcement, the Minister revealed a forthcoming initiative aimed at promoting the adoption of Electric Vehicles (EVs), particularly two-wheelers and three-wheelers, which is expected to boost electricity demand, lower transport costs, and reduce fuel imports. He lauded Pakistan’s energy mix, noting that over 55% of electricity is generated from clean energy sources, a figure projected to surpass 70% in the coming years. He also highlighted that nearly 75% of electricity is sourced domestically, with a goal of exceeding 90% in the near future.

The keynote address concluded with an engaging Q&A session, where the audience had the opportunity to discuss various aspects of the reform agenda with the Minister.

The event ended on a positive note, underscoring the government’s commitment to implementing reforms aimed at enhancing governance and efficiency in electricity generation, transmission, and distribution. These initiatives are expected to lead to a reduction in electricity prices and foster industrial and economic growth across the country.