Govt sets up 8-member task force for reforms in energy sector

The federal government has announced the formation of an eight-member task force for structural reforms, in a move aimed at addressing the critical issues in the energy sector.

The announcement for the creation of this task group has been formally issued, after approval by Prime Minister Shehbaz Sharif.

The task committee is tasked with resolving the pressing problem of billions of rupees in capacity payments to Independent Power Producers (IPPs) and revising current contracts. Within a month, the task team will present a thorough report to the prime minister, complete with recommendations and an implementation plan.

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Sardar Awais Ahmed Khan Laghari, the Federal Minister for Energy, has been appointed head of the task group, with Muhammad Ali, Special Assistant to the Prime Minister on Energy, acting as co-chairman. Lt Gen (retd) Muhammad Zafar Iqbal has been appointed national coordinator, with veteran bureaucrat Zakaria Ali Shah joining the task team.

The task group will also have one person each from NEPRA, the Central Power Purchasing Agency, the Private Power and Infrastructure Board, and the SECP. The task force’s secretariat will be headed by the Power Division’s special secretary.

The task committee will assess options to minimize capacity fees and recommend appropriate steps, including the possible shutdown of power stations. It will also investigate the startup costs of various IPPs, detecting corruption, procedural flaws, and regulatory deficiencies. In addition, the task group will evaluate IPP contracts and recommend solutions to the cyclical energy debt issue.

The task group will oversee the execution of structural changes in Pakistan’s electricity industry and will have extensive authority to carry out its responsibilities. It can choose specialists from both the public and private sectors and may request documents, information, or help from international consulting companies, bankers, legal consultants, certified accountants, or any other institution.

Furthermore, the task group will make recommendations for improving the energy sector’s administration and finances, as well as developing techniques for utilizing excess energy capacity in sectors. The federal government will provide the task force with the necessary funding and full support, while the Ministry of Energy will ensure effective communication and consultation.

The federal government’s prompt move demonstrates its commitment to addressing long-standing difficulties in Pakistan’s energy industry and guaranteeing sustainable and efficient energy management for the future.