PM Shehbaz Sharif Announces Power Sector Overhaul, Plans to Establish Free Electricity Market in Pakistan
Islamabad – May 2025:** Prime Minister **Shehbaz Sharif** has announced the government’s plan to establish a **free electricity market** in Pakistan soon, aimed at reducing power tariffs and ensuring efficient energy production. Chairing a high-level meeting on the **Integrated Generation Capacity Expansion Plan (IGCEP) 2024–2034**, the Prime Minister emphasized that **delays in energy projects will no longer be tolerated**.
The meeting focused on long-term reforms in the power sector and reviewed strategies to make electricity more affordable for consumers. The Prime Minister was informed that by **removing expensive projects** from the IGCEP and **adjusting project timelines**, the government expects to **save \$17 billion (approx. Rs. 4,743 billion)**.
He instructed authorities to prioritize large-scale infrastructure projects like the **Diamer-Bhasha Dam**, which are crucial for boosting power generation and ensuring sustainable water storage. PM Sharif said that the establishment of a **competitive electricity market** will lead to **lower prices and a more stable power supply** across the country.
The updated IGCEP plan now excludes **7,967 MW** worth of costly power projects. The revision also includes rescheduling of completion dates to optimize the power mix and reduce financial burden.
This move is part of broader energy sector reforms aimed at addressing Pakistan’s longstanding issues of circular debt, inefficiency, and over-reliance on expensive imported fuels.
Would you like a breakdown of the IGCEP plan or a timeline of the key projects affected?
