ISLAMABAD: Pakistan and Türkiye agreed to deepen cooperation on power sector reforms on Thursday, with Ankara offering technical assistance as Islamabad pushes ahead with plans to overhaul and eventually privatize state-owned electricity distribution companies.
The understanding was reached during high-level talks in Istanbul between Pakistan’s Minister for Power Sardar Awais Ahmad Khan Leghari, Adviser on Privatization Muhammad Ali and Turkish Energy Minister Alparslan Bayraktar, according to Pakistan’s Power Division.
Pakistan is pursuing sweeping reforms of its power sector under a $7 billion International Monetary Fund program aimed at reducing the sector’s mounting circular debt, improving governance and attracting private investment.
“Türkiye offered technical assistance for Pakistan’s energy sector reforms and agreed to share its experience in privatization and electricity distribution,” the Power Division said in a statement after the meeting.
“The Turkish energy minister also assured closer engagement between Pakistani authorities and Turkish companies, while Turkish private investors will be encouraged to explore investment opportunities in Pakistan’s power sector,” it added.
Pakistan’s electricity sector has long been burdened by high transmission and distribution losses, electricity theft, weak bill recoveries and a growing circular debt that has strained public finances and undermined investment in the energy sector.
Leghari reaffirmed the Pakistani government’s commitment to a transparent and investor-friendly privatization process and said reforms were under way to improve governance in distribution companies and strengthen the regulatory framework.
Türkiye has privatized electricity distribution across most of the country over the past two decades, a process Pakistani officials have cited as a potential model as Islamabad seeks to improve service delivery, reduce losses and attract private investment into the sector.
