ISLAMABAD: The Power Division on Thursday shared details of the country’s tariff structure, its impact on electricity demand, and consultations on an optional two-part tariff with the World Bank, one of the key development partners in Pakistan’s power sector.
Federal Minister for Power Sardar Awais Ahmad Khan Leghari discussed energy sector reforms and bilateral cooperation with the World Bank’s Country Director, Bolormaa Amgaabazar.
The World Bank is actively supporting Pakistan’s energy sector through reforms aimed at reducing high-cost, debt-driven power generation, promoting renewable energy, and improving efficiency. Key initiatives include tariff restructuring, reduction of circular debt, and upgrading transmission infrastructure to transition towards a sustainable, low-cost, and low-carbon energy system.
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Managing Director of Power Planning and Monitoring Company (PPMC), Abid Lodhi, presented new reform proposals and highlighted progress on ongoing initiatives. He outlined the key objectives of the financing proposal, including: (i) strategic power sector reforms (current and ongoing); (ii) the share of clean energy in Pakistan (present and future); (iii) green transition objectives and associated challenges; (iv) tariff structure and its impact on demand; and (v) financing proposals for clean energy integration.
During the meeting, the World Bank reaffirmed its support for Pakistan’s energy reform agenda and expressed its commitment to continued cooperation in improving the transmission and distribution system.
Minister Leghari requested sustained support from the World Bank to further strengthen the reform process. He stated that the increase in electricity demand reflects the success of government policies, adding that efforts are underway to make electricity tariffs more competitive.
He noted that the review of concessional tariffs for the industrial sector has been completed, with further measures under consideration. Work is also in progress to introduce a Time-of-Use tariff, enabling consumers to benefit from lower electricity costs during off-peak hours.
The Minister said the Power Division is considering major policy decisions to enhance electricity generation from indigenous resources. He added that the evolving situation in the Middle East has reinforced the government’s resolve to reduce reliance on external energy sources.
He appreciated the World Bank’s continued cooperation and acknowledged the successful implementation of ongoing projects, reaffirming the government’s commitment to strengthening Pakistan’s energy infrastructure in collaboration with the Bank.
The World Bank Country Director commended the Power Division’s reform agenda and reiterated the Bank’s commitment to working with the ministry on priority areas, including tariff rationalisation, strengthening transmission and distribution networks, and integrating renewable energy.
Copyright Business Recorder, 2026
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