On April 27, 2026, Federal Minister for Power Sardar Awais Ahmed Khan Leghari briefed a European Union delegation on Pakistan’s ongoing power sector transformation. The meeting, held in Islamabad, aimed to attract European investment in the country’s modernisation efforts.
Leghari emphasized four strategic areas: the digitisation of the national grid, deployment of smart meters, expansion of transmission lines, and integration of battery storage systems. He invited European investors to participate in the privatisation of electricity distribution companies (Discos), which presents significant opportunities.
The minister detailed plans to divest old, inefficient residual fuel oil-based power plants, noting that excluding 7,000 megawatts of expensive plants from the Indicative Generation Capacity Expansion Plan has saved Pakistan $17 billion.
The EU Investment delegation, including Thouraya Trimou, Director of the European Investment Bank, and EU Ambassador to Pakistan Raimundas Karoblis, expressed strong support for these reforms, which have improved the investment climate and encouraged European participation.
As of February 2026, Pakistan’s circular debt stood at Rs1,837 billion, but improved to Rs1,798 billion by March. The government aims for zero net addition by year-end through refinancing high-cost liabilities with lower-cost options.
Published in SouthAsianDesk, April 28, 2026
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