Pakistan has invited European investors to take part in its ongoing power sector modernisation plan during a briefing with a visiting European Union delegation.
According to Beyond Time News, Federal Minister for Power Sardar Awais Ahmed Khan Leghari outlined key reforms aimed at improving efficiency, reducing losses, and attracting foreign investment.
Four Priority Areas for Upgrading the Grid
The government has focused its reform strategy on four main areas:
- Expansion of smart meters to improve billing and reduce losses
- Upgrading and expanding transmission infrastructure
- Introducing large-scale battery storage systems
- Promoting local manufacturing of power equipment
Officials said these steps are part of a broader effort to modernise Pakistan’s electricity system.
Privatisation and Structural Changes
The minister also confirmed that electricity distribution companies (Discos) are being prepared for privatisation, with opportunities open for international investors, including European firms.
He added that inefficient and costly residual fuel oil (RFO) power plants are being phased out to reduce long-term energy costs.
Pakistan Pakistan govt implementing reforms for improvement in petroleum sector
Circular Debt Shows Improvement
Officials shared that circular debt stood at Rs1,837 billion in February 2026 but dropped to Rs1,798 billion in March 2026.
The government aims to stop further accumulation by the end of the year under its debt management plan. Efforts include refinancing expensive liabilities with cheaper financing to ease pressure on the system.
EU Welcomes Reforms
The EU delegation, including representatives from the European Investment Bank and the EU Ambassador to Pakistan, appreciated the reforms. They said the changes have improved investor confidence and made Pakistan’s energy sector more attractive for investment.
Conclusion
Pakistan’s power sector reforms are opening new opportunities for foreign investment, with a strong focus on modernisation, efficiency, and financial stability through international cooperation.
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