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Pakistan seeks US support for power sector reforms, investment and DISCO privatisation

December 9, 2025
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Federal Minister for Power Awais Ahmed Leghari has discussed reforms, investment prospects and ongoing collaboration aimed at stabilising and modernising Pakistan’s power sector during a meeting with US Ambassador to Pakistan Natalie Baker.

During the meeting, the minister requested U.S. support in engaging multilateral development partners and international financial institutions, including the IMF and the World Bank, to help ease constraints affecting the sector’s long-term sustainability. He said backing from development partners would strengthen Pakistan’s ability to implement structural reforms and improve performance across the value chain.

Leghari briefed the ambassador on the newly launched Surplus Power Package, which offers competitively priced electricity to industries and is intended to stimulate economic activity. He asked for U.S. support in extending the package to greenfield industries to encourage fresh investment.

The discussion also covered efforts to curb technical and commercial losses, improve recoveries and strengthen power distribution operations. Ambassador Baker appreciated the ministry’s ongoing reforms and noted progress in managing inefficiencies and controlling circular debt through targeted, data-driven measures.

Both sides examined investment opportunities for U.S. firms, particularly in Pakistan’s power transmission network, which the government aims to open further to private participation. Baker expressed interest in the available opportunities and acknowledged the sector’s investment potential.

Leghari also sought U.S. assistance in encouraging American investors to participate in the planned privatisation of distribution companies (DISCOs), stressing that private-sector involvement is critical to improving operational efficiency and service quality across the system.

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