Pakistan has sought the Asian Development Bank’s (ADB) assistance to address mounting power sector debt and restore private investor confidence, as the government accelerates reforms aimed at transitioning to a competitive electricity market and a cleaner energy mix. The request was made by Federal Minister for Power Sardar Awais Ahmed Khan Leghari during talks with an ADB delegation led by Leah Gutierrez, Director General for Central and West Asia.
During the meeting, the minister highlighted key challenges facing the power sector, including financing constraints, limited availability of rupee cover, and high upfront project costs. He noted that these factors continue to impede reforms and deter private investment, despite the government’s commitment to restructuring the electricity market and modernizing infrastructure.
Leghari informed the delegation that the government is actively engaging local investors through the Pakistan Business Council to unlock fresh investment in power transmission and enhance market transparency. He added that transmission planning has been aligned with the Indicative Generation Capacity Expansion Plan (IGCEP) and that surplus capacity deemed unnecessary for future demand has been eliminated to reduce financial strain on the system.
Reaffirming a major policy shift, the minister said Pakistan will no longer procure power under the old guaranteed-capacity model and is instead moving toward a competitive electricity market. He pointed out that around 20 gigawatts of clean energy capacity has already been integrated into the system, largely without dedicated financing or adequate grid-stability funding. While the transition has continued despite limited support, he stressed that coordinated planning and sufficient financing are now essential to ensure grid reliability as renewable energy expands further.
The minister also highlighted the government’s Energy Surplus Package, which is designed to stimulate electricity demand and increase private-sector offtake. The initiative aims to improve utilization of existing generation capacity and ease financial stress across the power sector value chain.
Seeking ADB’s support, Leghari emphasized the need for assistance in managing debt repayment challenges and implementing confidence-building measures to attract private investors back into the sector. He revealed that a detailed feasibility report tailored for investors would be shared soon and announced plans to roll out smart meters through private participation under a public-private partnership model. The initiative will focus on technology integration, efficiency improvements, and loss reduction.
ADB’s Leah Gutierrez, on her first official visit to Pakistan in her current role, welcomed deeper engagement with the Power Division and expressed interest in supporting smart metering and power sector reforms. She highlighted ADB’s experience in public-private partnerships and technology integration, noting the bank’s willingness to support Pakistan’s Integrated Energy Plan and serve as a transitional adviser on PPP frameworks. She added that ADB’s sovereign and non-sovereign operations operate on a single platform, enabling end-to-end support for complex reforms.
Separately, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb emphasized the adoption of modern data analytics technologies, including artificial intelligence, machine learning, and automated tools, to strengthen public sector auditing. Addressing the inauguration of the Center for Government Data Analytics at the Auditor-General of Pakistan headquarters, he said enhanced digital access to public-sector data would improve audit coverage, transparency, and accountability.
Auditor-General of Pakistan Maqbool Ahmad Gondal outlined ongoing digital transformation initiatives, including the Audit Management Information System and data analytics tools, while reaffirming the commitment to governance reforms and efficient use of public resources.
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