ISLAMABAD: Pakistan’s first-ever National Integrated Energy Plan (IEP) has been finalised by the Power Division and is set to be reviewed and approved by the Cabinet Committee on Energy (CCOE) on Thursday, with Prime Minister Shehbaz Sharif chairing the meeting.
The IEP aims to introduce coordinated, evidence-based planning across the power, petroleum and water sectors, addressing long-standing issues of fragmented policymaking, siloed planning and inefficient resource utilisation. The plan was developed on the directives of the Prime Minister’s Office and in line with the National Electricity Policy 2021, approved by the Council of Common Interests.
During the meeting, the CCOE will also consider framework guidelines for wheeling auctions 2025 under Strategic Directive-87 of the National Electricity Plan, rules for competitive supply of 800MW, and seek clarification on a Rs67 billion recovery shortfall reflected in the circular debt report for July–September.
The International Monetary Fund has repeatedly urged Pakistan to finalise the IEP, stressing cost-side reforms, subsidy rationalisation and measures to control circular debt. Key recommendations include unification of gas pricing for indigenous gas and imported RLNG, a revised gas subsidy framework, and establishment of a Competitive Trading Bilateral Contract Market (CTBCM) to enable wholesale and retail electricity trading.
However, implementation of the Weighted Average Cost of Gas (WACOG) remains contentious, with Sindh, Balochistan and Khyber Pakhtunkhwa opposing the blending of imported RLNG with locally produced gas, citing constitutional rights over gas resources.
In a parallel development, Nepra has approved the transfer of licenses from NTDC to the Independent System and Market Operator (ISMO)—formed through the merger of CPPA-G and NPCC. This transition is expected to pave the way for a competitive wholesale electricity market, replacing the existing government-dominated model with multiple buyers and sellers paying regulated transmission and distribution charges.
Officials said the prime minister has directed that no summary from the Power Division be approved without input from the Petroleum Division and vice versa. The IEP framework was endorsed in an inter-ministerial meeting on September 11, 2025, while a secretary-level meeting on October 30, 2025 finalised the proposed secretariat’s structure and roadmap for 2025–27.
The Integrated Energy Plan is expected to provide Pakistan with a unified, long-term policy framework, enabling informed decision-making amid evolving global energy markets, technological change and environmental challenges.
Story by Khalid Mustafa
