IBA Karachi Hosts Federal Minister for Power for a Keynote Address on ‘Pakistan Power Reforms Project’
September 25, 2024: Institute of Business Administration (IBA), Karachi and the Ministry of Energy (Power Division) co-hosted an event, where the first keynote session for the Pakistan Power Reforms Project commenced. The session was organized by School of Business Studies (SBS), IBA. Students, faculty, economists, media and general audience attended the enlightening address.
The Federal Minister for Power, Sardar Awais Ahmad Khan Laghari gave a keynote address, identifying the fault lines, and a clear roadmap for reforms that can improve efficiency of the power sector, catalyzing industrial, and economic growth in the process. The keynote was followed by a discussion with the Minister, and Executive Director, IBA, Dr. S Akbar Zaidi as panelists and Entrepreneur, Mr. Junaid Iqbal, as the moderator.
The Minister emphasized that structural reforms are complex, with results expected in a few months. The Power Division is focused on enhancing governance in distribution companies and transforming transmission infrastructure to boost efficiency and reduce losses. Additionally, plans are underway to stimulate industrial demand and accelerate economic growth.
Discussing the issue of tariffs, he highlighted that front-loaded debt repayments contributed significantly to capacity charges, and addressing the same through various policy levers can result in rationalized prices across the board. Moreover, it’s extremely important that we actively move towards a competitive market regime, where electrons can be traded between buyers, and sellers, such that efficiency is rewarded, moving away from a cost-plus regime focused on a single-buyer model.
The Minister announced a forthcoming policy to promote Electric Vehicle (EV) adoption, especially for 2-wheelers and 3-wheelers, which will boost electricity demand, lower transport costs, and reduce fuel imports. He noted that Pakistan has one of the world's cleanest energy mixes, with over 55% of electricity from clean sources, projected to exceed 70% in a few years. Additionally, nearly 75% of electricity comes from indigenous sources, expected to rise above 90% soon.
Following the session an engaging Q&A followed.
The event concluded positively, emphasizing a reform agenda aimed at improving governance and efficiency in electricity generation, transmission, and distribution. This is expected to lower electricity prices and stimulate industrial and economic growth.
About IBA Karachi:
The Institute of Business Administration (IBA), Karachi, with almost seven decades of legacy, is a multi-disciplinary Institute. In 2020, the institution broadened its academic landscape by launching three new schools: the School of Business Studies (SBS), the School of Economics & Social Sciences (SESS), and the School of Mathematics & Computer Science (SMCS). This strategic expansion features IBA’s commitment to advancing educational innovation and maintaining excellence across diverse fields.
