Prime Minister Shehbaz Sharif has directed authorities to accelerate the privatization of electricity distribution companies (DISCOs) and generation companies (GENCOs), underlining the government’s push to overhaul Pakistan’s struggling power sector. The directive was issued during a high-level review meeting on power sector reforms held in Islamabad.
During the meeting, the Prime Minister emphasized that creating a competitive electricity market through privatization is the only sustainable path forward to address the country’s long-standing energy challenges. He stressed that inefficiencies, financial losses, and outdated systems have placed a heavy burden on the national economy, making structural reform unavoidable.
The Prime Minister instructed relevant ministries to prioritize development projects aimed at strengthening the electricity transmission network. He highlighted that improving transmission capacity is essential to reduce system losses and ensure reliable power supply across the country.
A key focus of the meeting was the introduction of modern energy solutions. PM Shehbaz directed officials to initiate work on a Battery Energy Storage System through public-private partnerships. He emphasized that private sector participation would be crucial in aligning Pakistan’s power infrastructure with modern global standards and improving grid stability.
Officials briefed the Prime Minister on progress related to electricity generation, transmission upgrades, and ongoing privatization plans. It was shared that concrete steps are underway for the privatization of three major distribution companies: Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), and Gujranwala Electric Power Company (GEPCO). Expressions of Interest for potential investors are expected to be published soon.
The meeting was also informed that the PC-1 for the 500 kV Ghazi Barotha–Faisalabad transmission line is currently in the approval phase. Once completed, the project is expected to significantly strengthen the national transmission system and help reduce bottlenecks that lead to power outages.
Progress on fuel transition was another important aspect discussed. Technical feasibility for converting power plants from imported coal to locally sourced Thar coal has been completed. Work on developing a railway line to transport Thar coal to power plants is ongoing, a move aimed at reducing reliance on costly imports and improving energy security.
Participants were also briefed on the operationalization of a competitive electricity market. Officials noted that continuous reform efforts have already led to a reduction in line losses compared to the previous year, indicating early signs of improvement.
The concept clearance proposal for the Battery Energy Storage System project has been approved, and a detailed feasibility study is currently in progress. Once implemented, the system is expected to enhance energy efficiency, support renewable integration, and provide backup during peak demand.
Prime Minister Shehbaz Sharif reiterated that power sector reforms remain a top government priority. He stressed that timely implementation, transparency, and investor confidence are critical to ensuring affordable electricity for consumers and long-term economic stability for Pakistan.