GILGIT: The Government of Gilgit-Baltistan and NPAK Energy Limited — a subsidiary of Industrial Promotion Services (IPS) of the Aga Khan Fund for Economic Development (AKFED) — has signed a set of operational agreements that formally initiate the region’s first energy-sector public–private partnership.
Under the agreements, NPAK Energy will assume responsibility for power generation, transmission, and distribution across Hunza District from 1 January 2026.
The signing marks a major milestone in implementing the long-term partnership envisioned in the 2020 Concession Agreement between the two sides. Under that agreement, the Government of Gilgit-Baltistan retains ownership of all energy assets in Hunza, while NPAK Energy takes over operational management for a 30-year term.
The initiative aims to provide reliable, affordable, and uninterrupted 24/7 electricity to all residents of Hunza, supporting economic development, improving public service delivery, and enhancing climate resilience in one of Pakistan’s most important tourism hubs. As part of their broader cooperation, an Energy Master Plan for Gilgit-Baltistan is already under development to guide future investments and explore opportunities to expand the partnership model to other districts.
As a subsidiary of IPS — the industrial and infrastructure development arm of AKFED — NPAK Energy brings extensive global experience in clean energy, utility operations, and rural electrification. Working alongside the Gilgit-Baltistan government and development partners, the company will increase Hunza’s generation capacity, strengthen transmission and distribution systems, and improve operational efficiency. It will also launch a Corporate Social Responsibility programme focused on community development, environmental protection, youth skills training, and other local priorities.
All employees currently serving under the Water and Power Department in Hunza will retain their positions, ensuring continuity for workers and their families. NPAK Energy has committed to investing in staff training, professional development, and modern operational practices while fostering a safe, inclusive, and performance-driven work environment.
With these agreements now in place, the Government of Gilgit-Baltistan and NPAK Energy have reaffirmed their shared commitment to improving service standards, expanding reliable energy access, and positioning Hunza as a model for clean, efficient, and resilient utility management in Pakistan.
