The federal government has announced the formation of an eight-member task force on structural reforms to address critical issues in the energy sector.
The notification for setting up this task force, approved by Prime Minister Shehbaz Sharif, has been officially released.
The task force is mandated to deal with the pressing issue of billions of rupees in capacity payments to independent power producers (IPPs) and review existing contracts. The working group will submit a comprehensive report to the Prime Minister within a month, including recommendations and an implementation plan.
Federal Minister for Energy Sardar Awais Ahmed Khan Laghari was appointed as the Chairman of the Task Force, with Special Assistant to the Prime Minister on Energy Muhammad Ali as Co-Chairman. Lt. Gen. (retd) Muhammad Zafar Iqbal was appointed as the national coordinator and senior bureaucrat Zakaria Ali Shah as a member of the task force.
The task force will also include one representative each from NEPRA, Central Power Purchasing Agency, Private Power and Infrastructure Board and SECP. The Task Force Secretariat will be headed by the Special Secretary, Power Division.
The task force will review measures to reduce capacity payments and propose the necessary measures, including possible plant closures. It will also examine the costs of setting up various IPPs, identify corruption, procedural flaws and legal loopholes. In addition, the task force will examine IPP contracts and propose solutions to address the issue of circular energy debt.
The task force will monitor the implementation of structural reforms in Pakistan’s energy sector and will have broad powers to carry out its duties. It may select experts from the public and private sectors and may request records, information or assistance from international consulting firms, bankers, legal advisors, chartered accountants or any other organization.
Furthermore, the working group will recommend measures to improve the management and finances of the energy sector and develop strategies for the use of excess energy capacities in industry. The federal government will provide the necessary budget and full support to the task force, while the Department of Energy will maintain effective communication and consultation.
This decisive action by the federal government underscores its commitment to overcome the long-standing challenges in Pakistan’s energy sector and ensure sustainable and efficient energy management for the country’s future.
