ISLAMABAD: The country’s business community has expressed serious reservations over what it describes as an attempt to clip the wings of the already under-pressure National Electric Power Regulatory Authority (Nepra) through a proposed legal amendment, which has reportedly been cleared by the National Assembly Standing Committee on Power without debate.
The proposed amendment to the Regulation of Generation, Transmission and Distribution of Electric Power Act will now be taken up by the Senate Standing Committee on Power for further consideration.
In a letter addressed to Chairman Senate Standing Committee on Finance and Revenue, Senator Saleem Mandviwalla, Karachi-based industrialist Rehan Javed warned that the proposed changes could undermine constitutional principles and concentrate excessive authority within the Power Division.
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The bill seeks to replace the term “Federal Government” with “Division concerned” or “Power Division” in key provisions of the Act, including Sections 7, 22, and 31(7).
Javed argued that the proposed change is in direct conflict with the Supreme Court’s landmark judgment in Mustafa Impex v. Government of Pakistan (PLD 2016 SC 808), which defined the “Federal Government” under Article 90 of the Constitution as the Federal Cabinet acting collectively, rather than any individual ministry or division.
He maintained that the principle of collective Cabinet responsibility is a fundamental constitutional safeguard, ensuring that decisions of national importance — including electricity tariff determination and regulatory oversight — are subject to broad-based deliberation and accountability.
Highlighting the practical implications, Javed cautioned that the amendment would grant the Power Division unchecked influence over electricity tariffs. Under the proposed framework, he said, Nepra could effectively be bound to follow the directions of the Power Division without Cabinet oversight.
“The Power Division already owns key entities in the power sector, including distribution companies (DISCOs), generation companies (GENCOs), and the Central Power Purchasing Agency (CPPA-G),” he noted, adding that placing tariff control and regulatory authority within the same ministry creates a serious structural conflict of interest.
He warned that such a concentration of power could have far-reaching consequences for electricity consumers and businesses across the country.
Raising a pertinent question, Javed asked why decisions claimed to be lawful and in the public interest could not be routed through the Federal Cabinet, which exists to ensure transparency and collective accountability.
He urged that the bill be deferred pending a formal constitutional opinion from the Law and Justice Division on its compatibility with the Supreme Court’s ruling and Article 90 of the Constitution.
He also called for comprehensive consultations with key stakeholders, including industrial representatives, Nepra, provincial governments, and international development partners.
While acknowledging the urgent need for reforms in Pakistan’s power sector, Javed stressed that such reforms must be grounded in constitutional principles rather than bypassing them. He expressed confidence that Parliament and the government leadership would give the matter the serious consideration it deserves.
Copyright Business Recorder, 2026
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