ISLAMABAD: Pakistan’s Power Minister Sardar Awais Ahmed Khan Leghari said on Wednesday a government-backed indigenization policy in the transmission sector has generated contracts worth over Rs12.6 billion ($45 million) for local industries and reduced costs by around 40 percent, as Islamabad seeks to curb imports and strengthen macroeconomic stability.
The policy, led by the National Grid Company (NGC), is part of broader efforts to localize the manufacturing of transmission line equipment, including conductors, cables and related infrastructure, conserve foreign exchange and accelerate project delivery in a country grappling with external account pressures and energy sector inefficiencies.
“The policy’s impact extends beyond cost savings, contributing significantly to macroeconomic stability through foreign exchange conservation,” Leghari was quoted as saying in a statement circulated by the Power Division.
“Timely delivery of materials from local manufacturers is enabling early project completion, accelerating critical transmission infrastructure development across the country,” he continued.
Under the initiative, nine “educational orders” — or small pilot contracts issued to help local firms build technical capacity and meet industry standards — worth Rs900 million have been awarded to domestic manufacturers, while 11 companies have been registered for capability development through joint ventures and partnerships with international manufacturers.
Officials say the program aims to build domestic capacity in sectors such as steel, cables and transmission conductors, reducing reliance on imports while laying the groundwork for potential export growth.
“The Power Division will continue championing such initiatives to foster industrial self-reliance and long-term economic resilience,” he said.
Pakistan has been pushing structural reforms in its power sector to address chronic inefficiencies, high costs and reliance on imported inputs, which have contributed to persistent financial strain and pressure on foreign exchange reserves.
