Ishaq Dar urges concrete reforms for Pakistan’s energy sector

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ISLAMABAD: Deputy Prime Minister Ishaq Dar has directed the authorities to evaluate the persistent energy sector challenges facing Pakistan and provide a concrete solution to them, ARY News reported.Senior officials, including the Secretaries of Finance and Power, the Minister for Power, and other key stakeholders, attended the meeting in Islamabad.The meeting mainly focused on mitigating energy sector challenges and restoring financial sustainability.It was said that unsustainable energy usage patterns, inefficient pricing models, ineffective funding management, and persistent transmission and distribution losses contribute to the sector’s financial stress.Ishaq Dar stressed the need for concrete, actionable improvements to ensure long-term energy stability. He instructed senior ministries to present proposals addressing sectoral challenges, focusing on minimising technical and commercial losses.Key priorities include rationalising supports, restructuring pricing for fairness and efficiency, and promoting responsible energy consumption to enhance sustainability.Deputy Prime Minister Ishaq Dar reiterated that ensuring long-term energy stability is essential not only to overcome energy sector challenges but also for Pakistan’s broader economic recovery.Dar urged all departments to escalate coordinated efforts and propose practical solutions to find solutions for systemic inefficiencies.Read More: NEPRA cuts power tariff for Aug-Oct 2025Earlier today, the National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs 1.88 per unit under quarterly tariff adjustment for the fourth quarter of FY 2024-25.This approval will result in a negative adjustment of Rs. 55.87 billion that will be given to consumers from August to October 2025.This step has been taken after capacity charges reduction and an increase in industrial electricity sales.This move comes in response to reduced capacity charges and a surge in industrial electricity sales as a result of integrating captive power consumers into the national grid.The NEPRA quarterly tariff adjustment will apply to all consumer categories of XWDISCOs and K-Electric once the federal government approves the adjustment.