Structural reforms in Energy & Infrastructure

Report by Engineering Post

Under the National Economic Transformation Plan (URAAN Pakistan), the energy sector was undergoing structural reforms to address circular debts, reduce reliance on imported fuels, enhance transmission and distribution efficiency.

Due focus was being attached on energy diversification, infrastructure expansion, efficiency improvements, private investment, and regional cooperation.

During the last financial year 2024-25, Pakistan’s installed generation capacity had risen to 46605 MW showing an increase of 4667 MW which was driven by 2813 MW from  net-metering and 1162 MW from  hydropower. Major additions included the Tarbela 5th Extension (1138 MW) and the Thar Coal expansion, which contributed to reduced dependence on imported fuels.

On the transmission side, significant progress included the 500 KV double -circuit lines from Ghazi Barotha to Faisalabad West, and from Matiari to Moro to Rahim Yar Khan, enabling reliable power transfer from renewable -rich regions to load centres.

The federal government has initiated a 1000 MW Battery Energy Storage System on the National Transmission & Dispatch Company ( NTDC) network to enhance grid stability, alongside 400 MVAR (Megavolt -Ampere Reactive ) reactive power compensation devices and FACTS installations.

During the ongoing financial year 2025-26, major projects included Dasu HPP (2160 MW), Tarbela Extension (1410 MW), Diamir Basha HPP (4599 NW) and implementation of the Energy Efficiency and Conservation Plan targeting a reduction of a 9 Millions of Tons of Oil Equivalent

(MTOE) in primary energy consumption. Additional priorities included updating building codes, integrated energy planning, public-private partnerships (PPPs), strategic gas storage, and gasification of 81 villages ;located within 5 km of gas production fields.