Islamabad: In a bid to address chronic circular debt, fragmented decision-making and long-standing coordination gaps among key ministries, the government is moving forward with the Integrated Energy Plan (IEP) to establish a coherent, evidence-based framework for Pakistan’s energy sector.
Energy is widely recognised as a critical driver of economic growth, social development and human well-being. However, the absence of a unified planning structure in the past has led to silo-based decision-making, inefficient resource utilisation and inconsistent policy inputs, contributing to instability and inefficiencies across the energy value chain.
To overcome these challenges, the government has launched multiple initiatives under the Integrated Energy Plan framework, including PAK-IEM and the Integrated Energy Planning Project. Against the backdrop of a rapidly evolving global energy landscape, environmental imperatives and accelerating technological change, authorities believe that institutionalising a robust national IEP is now essential to strengthen energy governance and ensure long-term policy coherence.
According to officials, the Cabinet Committee on Energy (CCoE) has approved the Integrated Energy Plan, following directives from the Prime Minister’s Office to the Ministry of Energy’s Power and Petroleum Divisions. The Prime Minister had instructed the ministries to establish an effective inter-ministerial coordination mechanism involving the ministries of Power, Petroleum and Water Resources to address cross-cutting energy issues.
The development of the Integrated Energy Plan was also mandated under the National Electricity Policy 2021, approved by the Council of Common Interests (CCI), requiring close consultation with federal and provincial governments and other stakeholders.
Following the Prime Minister’s directive, an inter-ministerial meeting was held in September 2025 under the chairmanship of the Minister for PD&SI, attended by ministers for Power, Petroleum, Water Resources and Economic Affairs. Participants discussed the proposed Integrated Energy Planning Ecosystem, including the establishment of an IEP Secretariat, clearly defined institutional roles and a high-level implementation roadmap.
Subsequently, a secretary-level meeting in October 2025 endorsed the proposed ecosystem, its structure and roadmap. Representatives from the ministries of Power, Petroleum, Planning and Water Resources broadly agreed on the framework, recognising the Integrated Energy Plan as a national priority.
The CCoE has since formally approved the Integrated Energy Plan architecture, ecosystem and high-level roadmap, along with the formation of a steering committee and its terms of reference. The committee also cleared the development and institutionalisation of an Energy Information System (EIS) to integrate databases across relevant ministries and organisations, enabling data-driven decision-making.
The Ministry of Commerce supported the proposal and recommended its inclusion in the steering committee, stressing the need to align the Integrated Energy Plan with national development priorities, trade policy, Sustainable Development Goals and Pakistan’s net-zero transition. The proposal also received backing from PPIB, PPMC and CPPA-G.
The initiative was further endorsed by the Special Investment Facilitation Council (SIFC), which underscored the urgency of moving forward. The plan has already been approved by all provinces and Gilgit-Baltistan, with a proposal to include the Chief Secretary of Azad Jammu and Kashmir in the committee.
Under the approved framework, the proposed IEP Secretariat will include a dedicated committee for joint deliberations on cross-sectoral issues, along with an Economic Analysis Wing.
By approving the “Proposed Integrated Energy Planning Ecosystem, Secretariat Structure and High-Level Roadmap 2025–27”, the government aims to bridge institutional divides, improve coordination among ministries, and enable informed, transparent and sustainable decision-making for Pakistan’s energy future.
Story by Zafar Bhutta
