National Power Policy

This Policy is produced by the Ministry of Water and Power of the Government of Pakistan. It has been adopted to provide an overall direction of energy policy in Pakistan. It identifies current challenges as follows:

- Current supply-demand gap of 4,500-5,000 MW, which has been continuously growing in the past 5 years

- Expensive electricity price (PKR12 (USD0.11) per unit) due to dependence over thermal fuel sources

- Energy inefficiency due to power loss from transmission and distribution (23-25%)

- Subsidies and circular debt due to energy inefficiencies, energy theft and high cost of generation.


The Policy sets the following targets to achieve sustainable power generation, energy conservation, affordable energy supply, energy efficiency and good governance:

- Decrease supply-demand gap to zero by 2017

- Decrease cost of generation from PKR12 (USD0.11) per unit to PKR10 (USD0.09) per unit by 2017

- Decrease transmission and distribution losses from 23-25% to 16% by 2017

- Increase electricity payment rate from 85% to 95% by 2017

- Decrease decision making processing time at the Ministry of Water and Power and related departments


Basic principles laid out in the Policy are efficiency, competition and sustainability. Though detailed implementation strategies are not indicated, basic strategies to achieve overall goal are indicated. Strategies on energy supply, energy demand, affordable power, supply-chain, generation, transmission, distribution, financial efficiency and governance are listed.