PM Forms 8-Member Task Force to Implement Key Reforms in Power Sector

The Prime Minister has constituted an eight-member Task Force under the chairmanship of Federal Minister for Power Sardar Awais Khan Leghari to implement structural reforms in power sector A notification issued by the PM office on Sunday read that the PM has decided to constitute a task force to identify and oversee the implementation of structural reforms in the power sector to reduce the financial burden of the sector being borne by the federal government and to enable the establishment of an efficient, liquid and self-sustaining competitive power market. The Federal minister for power will be chairman of the power sector task force while Special Assistant to PM on Power Muhammad Ali will be co-chair of the task force. The other members of the task force will be Lt Gen Muhammad Zafar Iqbal (National Coordinator), Grade 21 Secretariat group officer Syed Zakaria Ali Shah, Nominees of one each of National Electric Power Regulatory Authority, Central Power Purchase Agency, Private Power and Infrastructure Board and SecuritiesExchange Commission of Pakistan will be members of the task force. The task force may engage and seek records and information or assistance from local and international consultant firms, bankers, legal advisors, chartered accountancy firms, and other organizations or individuals as deemed necessary. The Term of Reference of the Task Force includes recommending measures for making the power sector financially and operationally sustainable, overseeing the development of an efficient and liquid power market design along with its implementation, and recommending the utilization of excess capacity by industries/SEZs for stimulating growth. The task force will recommend measures to reduce capacity payments including but not limited to shutting down certain plants and taking other necessary measures as deemed appropriate. It will also review matters about setting up costs of various IPPs in the country and identify malpractices, procedure weaknesses, and regulatory gaps to recommend the way forward. Review compliance of IPPs with parameters and conditions of various agreements signed with government agencies and recommend measures to resolve the issue of circular debt stock in the energy sector, the ToR of the task force. The task force shall submit its recommendations along with an implementation plan for consideration by the PM within one month.