Pakistan seeks ADB support for power sector reforms, smart metering rollout

Pakistan has formally requested financing support from the Asian Development Bank (ADB) to aid its ongoing power sector reforms. The request was made during a high-level meeting between Federal Minister for Power, Sardar Awais Ahmed Khan Leghari, and an ADB delegation led by Leah Gutierrez, Director General of ADB’s Central and West Asia Department.

Minister Leghari outlined key challenges facing the power sector, including financing constraints, rupee cover issues, and high upfront costs. He emphasized the government’s efforts to engage local investors through the Pakistan Business Council (PBC) to attract private capital into the power transmission sector, aiming to improve market visibility and stability.

Leghari shared updates on progress in line with the Integrated Generation Capacity Expansion Plan (IGCEP), including removing excess power capacity that is no longer required. He also noted that Pakistan has successfully transitioned about 20GW of its power generation capacity to clean energy sources.

Despite the progress, Leghari highlighted the lack of dedicated financing for the clean energy shift and grid stability, stressing that coordinated efforts supported by adequate funding are crucial to maintain grid stability in the future.

Additionally, Leghari presented the Energy Surplus Package, which aims to boost electricity demand and increase private sector power offtake. He specifically requested ADB’s assistance in addressing debt repayment challenges and building investor confidence, noting that a feasibility report for private investors would soon be shared.

In terms of technological upgrades, the minister also outlined plans for a nationwide rollout of smart meters through public-private partnerships (PPP), focusing on technology integration and efficiency improvements. ADB expressed interest in supporting these smart metering initiatives, leveraging its expertise in PPPs and technology integration. Furthermore, the bank showed willingness to assist in the development of Pakistan’s Integrated Energy Plan and act as an advisor on PPP frameworks.