ISLAMABAD: In a decisive move to tackle the enduring financial and operational issues plaguing Pakistan’s power sector, the Prime Minister has established a high-level task force focused on implementing structural reforms.
This initiative aims to alleviate the “financial burden on the federal government” and create an “efficient, liquid, and self-sustaining competitive power market,” according to a notification issued on Sunday.
Leadership and Composition:
Chairman: Federal Minister for Power Sardar Awais Ahmad Khan Leghari.
Co-Chairman: Muhammad Ali, former caretaker federal energy minister, now serving as the premier’s special assistant on power.
National Coordinator: Lt Gen Muhammad Zafar Iqbal, HI (M).
Members: Include Syed Zakaria Ali Shah from the Secretariat Group, and nominees from NEPRA, SECP, the Central Power Purchasing Agency, and the Private Power and Infrastructure Board.
Mandate and Responsibilities:
Recommending measures to achieve financial and operational sustainability in the power sector.
Developing an efficient and liquid power market.
Proposing the utilization of excess capacity by industries and special economic zones to stimulate growth.
Reviewing and suggesting measures to reduce capacity payments.
Addressing malpractices in the setup of independent power producers (IPPs).
Ensuring compliance with government agreements.
Proposing solutions to the circular debt issue.
The task force’s role extends beyond fact-finding to overseeing the implementation of its recommendations, as stated by the Prime Minister’s Office (PMO).
Background and Expertise:
Muhammad Ali, the task force’s co-chairman, previously collaborated with intelligence agencies during the PTI government and produced a report that led to revised agreements with about three dozen old power producers. His work resulted in claimed savings of over Rs800 billion through negotiations, capping the exchange rate to Rs148 per US dollar. Despite these achievements, his calls for a forensic audit of contracts and renegotiations with newer plants under the 2015 policy were not implemented during his ministerial role. As caretaker energy minister, Ali significantly increased gas tariffs by over 480% before the February 2024 elections, showcasing his ability to handle complex negotiations, especially with private power producers, including Chinese IPPs set up under the 2015 policy.
Story by Khaleeq Kiani
