Power sector reforms in Pakistan would scrap uniform tariffs
A Privatisation Commission draft on power sector reforms in Pakistan would unbundle Discos, open retail competition, and realign prices with supply costs while shielding vulnerable households.
The Privatisation Commission has floated a draft reform package to support the sale of state-owned power distribution companies (Discos).
The plan would end the uniform electricity tariff across Discos and let competing private suppliers set different rates, with a regulated Supplier of Last Resort for protected supply.
Tariff differential subsidies would be trimmed on a time-bound path so domestic prices better match supply costs, with targeted relief kept for vulnerable households.
The multi-year tariff period would rise from five to seven years; distribution networks would be separated from retail supply under Nepra oversight.
The draft is not yet approved policy and is expected to go to the prime minister this week after feedback from ministries, regulators and investors.