The government has initiated practical implementation of an Integrated Energy Plan to address long-standing issues in the energy sector, including circular debt, weak coordination among ministries and fragmented planning, official sources said.
The initiative aims to bring all relevant institutions onto a single platform to ensure coordinated, transparent and evidence-based decision-making. Energy officials said the lack of clear planning in the past had led to inefficient use of resources, policy inconsistencies and silo-based decisions, despite energy being a key driver of economic growth, social development and human welfare.
To overcome these challenges, the government has taken several steps, including the Pakistan Integrated Energy Model (PAK-IEM) and the Integrated Energy Planning Project. In view of global energy transitions, environmental requirements and emerging technologies, authorities have termed the institutional development of a strong national integrated energy plan as essential.
Under a plan approved by the Cabinet Committee on Energy, the Prime Minister’s Office had directed the Ministry of Energy—covering both power and petroleum divisions—to establish effective inter-ministerial coordination with the Ministry of Water and other federal and provincial bodies.
In September 2025, an inter-ministerial meeting chaired by the federal minister for Planning, Development and Special Initiatives reviewed the integrated energy planning ecosystem, the proposed secretariat structure and the roadmap. The meeting was attended by ministers from the power, petroleum, water and economic affairs sectors. This was followed by a secretary-level meeting in October 2025, where consensus was reached on the proposed framework and roadmap.
The Cabinet Committee has now approved the structure, ecosystem and a high-level roadmap for 2025-27. Under the plan, a steering committee will be established, while an Energy Information System will be institutionalised through the integration of databases from various ministries and departments.
The Ministry of Commerce has also endorsed the initiative, stressing the need to align it with trade policy, sustainable development goals and net-zero targets. Provinces and Gilgit-Baltistan have confirmed their support, while a proposal has been made to include the chief secretary of Azad Jammu and Kashmir in the proposed committee.
Meanwhile, efforts to reduce circular debt have continued, with Oil and Gas Development Company Limited (OGDCL) receiving the seventh instalment of interest payments from Power Holding Private Limited. According to a notice issued to the Pakistan Stock Exchange, a total amount of Rs92 billion is being paid in 12 monthly instalments starting from July 2025.
