ISLAMABAD: The Senate Standing Committee on Power convened on Monday, led by Senator Mohsin Aziz, to review the progress of hydropower initiatives in Khyber Pakhtunkhwa, specifically focusing on the 207 MW Madyan and 88 MW Gabral-Kalam projects.
Senators Mirza Muhammad Afridi, Tariq Mahmood Khan Sadozai (Special Assistant to KP Chief Minister on Energy), Energy Minister Owais Ahmed Leghari, Senator Ahmed Khan, and Additional Secretary of Power.
During the meeting, Senator Aziz remarked on the absence of Shibli Faraz, who was notably active in previous sessions but has since been de-notified. The committee paid tribute to Faraz’s contributions, and members expressed appreciation for his service. Senator Aziz also welcomed Senator Mirza Afridi to the committee, emphasizing the importance of his participation.
Senator Afridi raised concerns about the stalled Rs14 billion project, emphasizing that KP’s sole power source was at risk of being further compromised if delays persisted. He acknowledged the closure of five Independent Power Producers (IPPs), calling it a positive move, and suggested increasing the protected electricity quota from 200 to 250 units for consumers.
Tariq Sadozai highlighted the limited national electricity capacity and stressed the need for improved transmission infrastructure. He mentioned that land worth Rs5 billion had been acquired for these projects, which had seen some physical and financial progress; however, the federal government had removed these projects from the official list. Sadozai pointed out that Pakistan’s transmission capacity is capped at around 23,000 MW, and without upgrades, excess electricity cannot be effectively distributed. He recalled prior assertions made during CCI meetings from 2016-2018 about future electricity surpluses, which remain unrealized due to transmission constraints.
Energy Minister Owais Ahmed Leghari criticized KP officials for misinterpreting the power policy approved by the CCI, questioning whether the IG SAP was a static or adaptable document. He explained that purchasing power from these projects would be costly, noting that the projects relied solely on loans from the World Bank rather than direct investment. He assured that none of the captive power plants had failed financially, and emphasized that terminating IPPs had saved the government Rs3,400 billion over the coming years, reducing the country’s power burden by 10,000 MW.
Leghari also stated that the IG SAP had been submitted to NEPRA, and the government would cease buying electricity under these arrangements. He highlighted the success of creating a competitive electricity market, which has reduced government purchases. He remarked that if the electricity is affordable, the government should approach the World Bank for loans to develop such capacity. Since June 2024, tariffs for industry had decreased by 30-35%, and losses faced by power distribution companies had been reduced by Rs191 billion, although he acknowledged ongoing issues with electricity theft.
Senator Ahmed Khan inquired about the approval process for land acquisition, to which Chairman Mohsin Aziz responded that the installation of captive power plants was at the government’s request, but questioned whether KP had been unfairly disadvantaged. He expressed concern over whether KP’s interests had been sidelined in these projects. Aziz noted that KP had recently engaged with the federal government regarding these initiatives.
Additional Secretary Power mentioned that the Gabral Power Project had yet to be contracted, and that the government was reviewing multiple projects ranging from 8,000 to 10,000 MW, including several under CPEC. The official explained that the protected category policy was under continuous review, and subsidies on electricity for consumers using up to 200 units were still in place.
In closing, Chairman Mohsin Aziz emphasized the need to revisit the protected category policy, advocating that completing these projects within KP would be more beneficial for regional development and energy security.
