KARACHI: The Pakistan Business Forum (PBF) says the prolonged power outages were adversely affecting businesses and industrial activity, with exporters facing delays in fulfilling international orders due to unreliable electricity supplies.
The forum raised serious questions over the management of the country’s power sector, pointing out that widespread load shedding continues despite Pakistan having an installed electricity generation capacity of 49,651 megawatts. Meanwhile, Pakistani electricity users paid Rs. 13,397 billion to IPPs over the past five years, with only Rs. 7,275 billion going toward actual electricity generation.
A significant portion of the remaining payments went to IPPs that generated no electricity at all.
The PBF Chief Organiser Ahmad Jawad said consumers in several parts of the country are currently facing up to 12 hours of load shedding, while Pakistan is simultaneously producing electricity at one of the highest costs in the region.
The PBF demanded that the Power Division clearly disclose, in simple and understandable terms, the country’s current electricity demand, actual power generation and the shortfall being managed through load shedding.
The forum also called for complete transparency regarding electricity generation from power plants. It urged the government to inform the public about which power plants, apart from Mangla and Tarbela, are currently generating electricity, how much each plant is producing, and the total number of power plants operating in the country.
According to the Power Division, the unavailability of RLNG and the delay in the arrival of an LNG cargo affected approximately 3,600 MW of electricity generation.
The PBF questioned how a disruption involving a single LNG cargo could have such a significant impact on the national power system, particularly when consumers continue to pay substantial capacity and fixed charges to Independent Power Producers (IPPs).
The forum also questioned the rationale behind approximately Rs1.8 trillion in annual capacity payments for idle generation capacity, arguing that the power sector requires more effective planning and contingency mechanisms to deal with foreseeable supply disruptions.
The PBF further noted that the flow of circular debt increased by 709 percent to Rs364 billion during the last fiscal year. It questioned the effectiveness of the existing power-sector management framework, stressing that the government must strengthen planning, improve system efficiency and ensure that consumers do not continue to bear the cost of structural weaknesses in the power sector.
The PBF also highlighted the sharp increase in electricity tariffs over the years. It noted that during the government of Nawaz Sharif, the average electricity tariff was around Rs8.30 per unit, excluding taxes, whereas during the tenure of Prime Minister Shehbaz Sharif, the average tariff has risen to nearly Rs29 per unit.
“Despite the continuous increase in electricity prices, circular debt also continues to rise every year,” the PBF said, questioning the sustainability and effectiveness of the existing power-sector model.
The PBF further pointed out that, apart from the distribution companies (DISCOs), more than ten government departments are involved in managing different aspects of the power sector, placing an additional burden on the national exchequer.
The Pakistan Business Forum demanded that the government prepare and publicly release a comprehensive report explaining the reasons behind repeated increases in electricity tariffs. Also complete details of IPPs’ capacity payments, fixed charges, other payments, contractual obligations and all major costs associated with electricity generation and supply.
The PBF emphasised that greater transparency and accountability in the power sector were essential to restoring public confidence, reducing the cost of electricity, controlling circular debt and ensuring a reliable power supply for households, businesses and the country’s export-oriented industries.
Copyright Business Recorder, 2026
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