The federal government has approved the high-level design of an integrated energy plan aimed at strengthening Pakistan’s energy sector and making electricity more affordable for consumers over the long term.
The decision was taken on August 18 during a meeting of the Cabinet Committee on Energy, chaired by Prime Minister Muhammad Shehbaz Sharif at the Prime Minister’s House in Islamabad.
The Power Division presented the High Level Design Report for the Integrated Energy Plan 2027-2060, which seeks to bring federal and provincial governments and other stakeholders together to improve energy security and economic competitiveness.
According to the Prime Minister’s Office, the proposed energy plan will focus on developing a strategy to provide electricity to industrial and domestic consumers at affordable rates.
The plan will also promote low-carbon energy generation, renewable electricity and environmentally friendly energy sources that can adapt to the challenges posed by climate change.
The government aims to use the integrated approach to address long-term challenges across Pakistan’s electricity and wider energy sector.
The Cabinet Committee also approved proposed amendments to the National Electricity Plan 2023-2027 presented by the Power Division.
The amendments cover several areas, including integrated energy planning, expansion of electricity generation, renewable power supply to remote areas, cross-border electricity trade and expansion of the transmission network.
The proposed changes also include reforms related to tariff design, electricity conservation, system and market operations, risk identification, administrative matters, local fuel and technology capabilities, research and development, and digitization.
However, the committee directed officials to hold further consultations with the Government of Khyber Pakhtunkhwa and the National Electric Power Regulatory Authority (NEPRA) before moving ahead with the amendments.
During the meeting, the Power Division presented a report on circular debt in the power sector for fiscal year 2025-26. The Petroleum Division also presented a separate report on circular debt in the gas sector for the same fiscal year.
The Prime Minister’s Office did not disclose the amount of power or gas sector circular debt in its statement. It also did not provide details of the financial structure or implementation framework for the proposed Integrated Energy Plan 2027-2060.
The government’s long-term energy strategy is expected to focus on improving affordability, strengthening supply security and supporting a more sustainable electricity system.
