# CCoE Approves NEP Amendments, Integrated Energy Plan Design to Cut Power Costs
**ISLAMABAD:** The Cabinet Committee on Energy (CCoE), chaired by Prime Minister Shehbaz Sharif, has approved amendments to the **National Electricity Plan (NEP) 2023–27** and the high-level design of an **Integrated Energy Plan (IEP) 2027–60**, with the government seeking to strengthen energy security, reduce electricity costs and accelerate the transition towards cleaner energy sources.
The decisions were taken at a CCoE meeting on Tuesday, where the Power Division presented the proposed amendments to the NEP. The revised plan covers integrated energy planning, expansion of generation and transmission capacity, renewable electricity supply to remote areas, cross-border electricity trade, tariff reforms and energy conservation.
The amended plan also proposes reforms in system and market operations, risk identification and management, administrative arrangements, development of domestic capacity in fuel and energy technologies, research and development, and digitisation of the power sector.
The CCoE approved the amendments but directed the Power Division to undertake further consultations with the **Khyber Pakhtunkhwa government** and the **National Electric Power Regulatory Authority (NEPRA)** before proceeding with implementation.
The committee also approved the high-level design of the **Integrated Energy Plan 2027–60**, submitted by the Power Division. The long-term framework will involve the federal and provincial governments along with other relevant stakeholders and is aimed at providing a coordinated direction for Pakistan’s energy sector.
According to the government, the IEP is intended to enhance energy security and economic competitiveness while ensuring affordable and reliable electricity for industrial and domestic consumers. It also places greater emphasis on low-carbon and environmentally sustainable energy sources, power generation and climate resilience.
The meeting was also briefed on the financial position of the power and gas sectors. The Power Division presented its report on **power-sector circular debt for FY2025–26**, while the Petroleum Division submitted a separate report on **gas-sector circular debt** for the same period.
Officials estimated that power-sector circular debt stood between **Rs1.675 trillion and Rs1.835 trillion as of June 30, 2026**. The official net increase was reported at **Rs61 billion** after partial budgetary adjustments, while an alternative calculation put the increase at **Rs364 billion**, attributing the difference largely to system inefficiencies.
In the petroleum and gas sector, **principal circular debt exceeded Rs1.8 trillion**, while total liabilities of the gas sector crossed **Rs3.44 trillion**, highlighting the continuing financial challenges facing Pakistan’s energy system.
The approval of the revised NEP and the long-term IEP design marks another step towards integrated energy planning, with the government seeking to address structural inefficiencies, improve affordability and increase the share of cleaner energy in Pakistan’s future power mix.
Story by Zulfiqar Ahmad
