Pakistan Expands Power Sector Privatisation with LNG and Jamshoro Plants

Pakistan has decided to expand its power sector privatisation programme to attract private investment and cut losses. The government added the Jamshoro Power Plant and two LNG-fired units to the list. Officials believe these changes will make the energy sector more efficient and reduce the subsidy burden on the national budget.

Government’s Privatisation Plan

Adviser to the Prime Minister on Privatisation, Muhammad Ali, shared the details during a consultative meeting. The power sector receives around Rs1.2 trillion in yearly subsidies to cover price gaps, debt, and inefficiency. He said the country could face major financial issues without immediate reforms.
Therefore, the government appointed Alvarez & Marsal as financial adviser for the sale of three profitable companies Lesco, Fesco, and Gepco. The team will soon invite Expressions of Interest from potential investors. Former Nepra chairman Tauseef Farooqi said the companies supported privatisation and employees were unlikely to resist.

Uniform Tariff and World Bank’s Conditions

The government plans to continue the uniform electricity tariff after privatisation. This means efficient regions like Punjab may keep supporting high-loss areas such as Sindh and Balochistan.
The World Bank listed several conditions for the process. These include transferring company shares to the President of Pakistan and clarifying subsidy rules. It also asked for a new electricity policy that clearly defines roles and responsibilities.
Officials believe private ownership will help improve service delivery, reduce losses, and ensure reliable electricity for all citizens.