ISLAMABAD: Pakistan has officially moved forward with plans to revamp its energy transmission sector by restructuring the National Transmission and Dispatch Company (NTDC). The company will be divided into three entities by early next year, aiming to enhance efficiency and reduce costs in the country’s power grid.
Energy Minister Owais Leghari made the announcement at a news conference on Saturday, stating that the restructuring is already underway, with full operational readiness expected by February 2025. “NTDC has long suffered from mismanagement, but we are implementing comprehensive changes to improve the sector,” he said. The restructuring, which has already received cabinet approval, is designed to improve oversight and address persistent issues such as project delays, cost overruns, corruption, and nepotism. The new structure will create three independent entities: the National Grid Company of Pakistan (NGCP), Energy Infrastructure Development and Management Company (EIDMC), and Independent System and Market Operator (ISMO).
NGCP will work on enhancing the reliability and efficiency of the country’s power transmission services. EIDMC will handle development and management of energy infrastructure projects, while ISMO will create a competitive electricity market, allowing consumers to choose from multiple suppliers, including distributors, to lower costs. Each entity will have its own board of directors to ensure accountability and reduce bureaucratic delays. Unlike the previous structure, which employed thousands of staff, each new entity will operate with just 50 to 70 employees.
Along with the restructuring, the government is negotiating with private energy producers to reduce consumer costs, particularly focusing on lowering power tariffs. It also plans to engage with domestic energy generators, including local renewable sources like wind and solar, to further decrease costs and reduce tariffs.
Leghari emphasized Pakistan’s growing role in green energy, noting that renewable sources such as wind, solar, nuclear, and hydropower now make up 55% of the nation’s energy mix. He added that by the next decade, 88% of the country’s energy production will come from clean sources. “We are proud to be a regional leader in green energy,” he stated.
The minister also mentioned the prime minister’s recently announced Electricity Sahulat Package, which will reduce electricity prices by Rs26 per unit for consumers during the winter months (December 2024 to February 2025). This initiative aims to encourage consumers to use electricity for heating instead of gas. If successful, the package could be extended annually, offering lower prices during winter.
“Our goal is to provide affordable electricity consistently to the public,” Leghari said, adding that the government is committed to further reforms in the energy sector, with the long-term vision of making Pakistan the most efficient energy provider in the region.
He also highlighted recent progress in preventing power theft and improving recovery efforts, which have helped improve energy management. Leghari encouraged consumers to take advantage of the new winter electricity package, emphasizing that it would stimulate economic activity while supporting the country’s energy efficiency goals.
