The World Bank (WB) has voiced concerns regarding proposed amendments to the Nepra Act, 1997 and the Electricity Act, 1910, warning that the changes may undermine the independence of Pakistan’s National Electric Power Regulatory Authority (Nepra).
According to reports, the WB’s concerns focus on the proposed replacement of the term “Federal Government” with “Power Division” in relation to the approval of regulatory proposals. This adjustment could shift the decision-making authority for key regulatory approvals from the federal government to a single division, potentially curbing Nepra’s autonomy and oversight capabilities.
On Sunday, Power Minister Sardar Awais Ahmad Khan Leghari dismissed figures presented in Nepra’s State of Industry Report 2024-25, fueling debate over the amendments. The discussion highlights growing tensions between the government, regulatory authorities, and the business community regarding the scope of regulatory independence.
The World Bank has already conducted a meeting with Pakistani authorities to discuss the proposed changes and is expected to hold further sessions. The concerns raised have resonated with Pakistan’s industrial and business sectors, which have cautioned that limiting Nepra’s independence could impact tariff regulation, sector oversight, and investor confidence.
Prime Minister Shehbaz Sharif has taken notice of the issue and directed Minister Leghari to discuss the matter further with him, indicating the government’s recognition of the potential implications.
Under the proposed amendments to Section 31(7) of the Nepra Act, responsibilities for notification of tariffs and charges would shift to the relevant division. If the division fails to act or refer tariffs back to Nepra, the authority could proceed to implement the approved tariffs without further delay.
Similarly, proposed revisions to the Electricity Act, 1910 would replace references to the “Federal Government” with “appropriate authority” or “division concerned” in certain provisions, centralizing control over regulatory matters.
While these reforms aim to streamline governance and enhance administrative efficiency, stakeholders have raised alarms that they could compromise Nepra’s independence, affecting transparency, accountability, and regulatory stability in Pakistan’s power sector. The World Bank’s intervention underscores the importance of safeguarding institutional autonomy while pursuing sector reforms.
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