‘Powering Progress: Investments and Digitization to Overcome Pakistan’s Power Sector Challenges’

The energy and power sector of Pakistan has been facing issues that hinder the country’s progress towards energy independence. For example, there are problems with capacity charges imposed on independent power producers (IPPs), contributing to the mounting circular debt. There are several problems faced by consumers as well, such as load shedding and high electricity rates due to an outdated transmission and distribution system. Also, the issue of electricity theft has been a challenge, requiring improvements in the governance system and law enforcement. In order to address the challenges, the power industry must integrate new solutions such as digitization, smart metering, and targeted investments.