The federal government has announced the formation of an eight-member task force dedicated to implementing structural reforms in the energy sector. This initiative, approved by Prime Minister Shehbaz Sharif, aims to address critical issues, including billions of rupees in capacity payments to Independent Power Producers (IPPs) and the revision of existing contracts.
The task force, chaired by Federal Minister for Energy Sardar Awais Ahmed Khan Laghari, with Special Assistant to the Prime Minister on Energy Muhammad Ali as co-chairman, is mandated to submit a comprehensive report with recommendations and an implementation plan within a month.
The task force includes Lt Gen (retd) Muhammad Zafar Iqbal as national coordinator and senior bureaucrat Zakaria Ali Shah as a member. Representatives from NEPRA, the Central Power Purchasing Agency, the Private Power and Infrastructure Board, and the SECP are also included, with the special secretary for the Power Division heading the secretariat.
The task force will review measures to reduce capacity payments, suggest necessary actions, and scrutinize IPP set-up costs to identify corruption, procedural weaknesses, and regulatory gaps. It will also examine IPP contracts and propose solutions to address circular energy debt.
With broad powers to select experts and seek assistance from various organizations, the task force will monitor the implementation of structural reforms in the power sector. The federal government will provide the necessary budget and support, ensuring effective communication and consultation through the Ministry of Energy.
This decisive action by the federal government underscores its commitment to overcoming longstanding challenges in Pakistan’s energy sector and ensuring sustainable, efficient energy management for the future.
