ISLAMABAD: Pakistan has included two large-scale solar power projects—totaling 2,800 megawatts—in its Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35. These projects, located in Layyah, Jhang, and Muzaffargarh, are likely to be offered to Saudi Arabia’s ACWA Power under a potential Government-to-Government (G2G) agreement, according to Business Recorder.
The National Grid Company of Pakistan (NGC) has informed the Private Power and Infrastructure Board (PPIB) about the inclusion of a 1,000MW and an 1,800MW project to be developed by ACWA Power. Final approval, however, depends on the National Electric Power Regulatory Authority (NEPRA).
Although the projects had faced setbacks—ACWA Power declined to sign an agreement in November 2023 due to security concerns—recent diplomatic engagement has revived interest. A Saudi delegation’s visit and ongoing efforts by Pakistan’s embassy in Riyadh and the Special Investment Facilitation Council (SIFC) have helped reopen negotiations.
Yet, investor confidence remains fragile. Saudi authorities have expressed concern over the unresolved dispute involving Saudi firm Al-Jomaih and K-Electric. Deputy Prime Minister Senator Ishaq Dar is addressing the matter to assure Riyadh of Pakistan’s commitment to fair treatment.
The inclusion of these projects in IGCEP underlines Islamabad’s push to diversify its energy mix and draw foreign investment in renewable energy. Still, securing these strategic investments hinges on delivering clear political and regulatory assurances.
