To implement structural reforms in the strength zone. Pakistan’s Prime Minister, Shehbaz Sharif, has established venture pressure to solve strategic problems. And improve the monetary viability of Pakistan’s energy. Task Force for Energy Reform in Pakistan Formed.
Leadership and Composition of Task Force
Minister for Energy Awais Leghari has been nominated as its chairperson, while Ali Muhammad is the co-chairman. Lieutenant General (retd) Mohammad Zafar Iqbal has been made coordinator of the task force. Syed Zakaria Ali Shah would be one of its members who is a Grade 21 officer, besides representatives from NEPRA (National Electric Power Regulatory Authority), CPPA (Central Power Purchasing Agency), PPIB (Private Power and Infrastructure Board), and SECP (Securities and Exchange Commission of Pakistan). It also has specific Terms of Reference (TORs), allowing it to hire public and private experts.
Terms of Reference TaskÂ
According to these TORs, capacity payments must be reduced, and this task force must close some power plants. In addition, it should review measures concerning IPPS establishment costs. Furthermore, these TORs identify illegal actions, procedural flaws, or regulatory deficiencies in establishing IPPs. Moreover, it is important to conform to government agreements with IPPS, for instance, through adherence to terms to determine how financially sustainable the power sector is.
Addressing Critical Issues in Pakistan’s Power Sector
These TORs demonstrate several significant power sector challenges, including capacity payments and high unit costs. Additionally, increasing electricity consumption in industries established within special economic zones can be achieved. At the same time, it could identify strategies targeting ending circular debt challenges within this sector, which is a heavy financial load.
Conclusion and Timeline
Under his leadership, Mr. Awais Laghari expects that his team will present their recommendations regarding how the systemic issues related to energy crises in Pakistan can be resolved; within a month from now, the task force will provide those recommendations to Prime Minister Shehbaz Sharif to establish an improved and affordable electricity system.
