ISLAMABAD: Prime Minister Shehbaz Sharif has appointed Lieutenant General (Retd) Muhammad Zafar Iqbal as Special Assistant to the Prime Minister (SAPM) on Energy, with the status of Minister of State, with immediate effect.
According to a notification issued by the Prime Minister’s Office on October 13, 2026, the appointment was made under Rule 4(6) of the Rules of Business, 1973. The notification, bearing No. 3882/APM/2026, was issued by Special Secretary to the Prime Minister Shakeel Ahmed Mangnejo and directed the Cabinet Division to take further necessary action.
Lt Gen (Retd) Zafar Iqbal heads the National Task Force on Energy, which has played a key role in renegotiating agreements with Independent Power Producers (IPPs) and government power plants as part of efforts to reduce the financial burden on the power sector.
The task force has reported several major achievements, including the termination of contracts with six IPPs, renegotiation of tariffs with thermal, bagasse and wind power producers, and settlement of arbitration awards involving 12 thermal IPPs. It has also reported the recovery of more than Rs30 billion in past excess payments and the waiver of late payment interest exceeding Rs400 billion.
According to the task force, the renegotiated agreements and other power sector reforms are expected to generate estimated savings of Rs4 trillion over the remaining life of the affected projects.
The task force has also facilitated a Rs1.225 trillion financing arrangement through commercial banks to address circular debt in the power sector. The amount is to be recovered from consumers of distribution companies (Discos) and K-Electric through a charge of Rs3.23 per kilowatt-hour over six years.
The government has awarded performance-based rewards to members of the task force for their role in the renegotiations and related reforms.
The task force maintains that these measures will help reduce financial pressures on the power sector, deliver savings for electricity consumers and improve the long-term sustainability of Pakistan’s energy system.
