The Cabinet Committee on Energy, chaired by Prime Minister Muhammad Shehbaz Sharif, has approved the high-level design of an integrated energy plan that will fix Pakistan’s energy sector and make electricity more affordable in 2027-60.
The decision was taken during a meeting of the Cabinet Committee on Energy at the Prime Minister’s House in Islamabad on August 18, where the Power Division presented the High Level Design Report for Integrated Energy Plan 2027-2060.
The proposed plan will bring together the federal and provincial governments along with other relevant stakeholders, with the objective of strengthening energy security and improving economic competitiveness in Pakistan’s electricity and broader energy sector.
According to the Prime Minister’s Office, the plan will also seek to develop a strategy for providing electricity to industrial and domestic consumers at affordable costs. It will promote low-carbon energy and electricity generation, along with environmentally friendly and climate-change-adaptive energy sources.
During the meeting, the committee additionally approved amendments to the National Electricity Plan 2023-2027 presented by the Power Division. The proposed amendments cover a broad range of areas, including integrated energy planning, increasing electricity generation, supplying renewable electricity to remote areas, cross-border electricity trade and expansion of the transmission system.
What happened
The amendments also address tariff design, electricity conservation, system and market operations, risk identification, administrative matters, strengthening local fuel and technology capabilities, research and development and digitization.
However, the Cabinet Committee directed that further consultations be held with the Administration of Khyber Pakhtunkhwa and the National Electric Power Regulatory Authority (NEPRA) before proceeding further with the amendments.
The committee was also presented with a report from the Power Division on circular debt in the power sector for fiscal year 2025-26. A separate report from the Petroleum Division on circular debt in the gas sector for fiscal year 2025-26 was also presented.
The Prime Minister’s Office did not disclose the size of the power or gas circular debt in the statement, nor did it provide details of the proposed financial or implementation framework for the 2027-2060 integrated energy plan.
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