Pakistan Needs Power Capacity Optimization

Mettis Global published an opinion piece by economic analyst Shahid Anwar arguing that Pakistan's power sector now needs better use of existing generation capacity rather than a simple increase in supply. The federal government made payments of Rs2.935 trillion to independent power producers from July 2025 through May 2026, though June billing was still incomplete. NEPRA data cited in the column show thermal plants ran at 42.5 per cent utilization in FY2024-25, while renewable plants averaged 36.6 per cent.

Citing NEPRA, the column says capacity payments made up 61 per cent of Rs2,943.214 billion in FY2024-25 power purchase costs, excluding Iranian imports. The regulator mainly linked the higher capacity cost to surplus installed capacity and weak plant use, also citing reduced demand and AT&C-based load shedding. The author adds that new generation should follow proven need, transmission capacity and least-cost analysis.

The writer proposes a time-bound Power Capacity Optimization Task Force inside the current planning structure, using data from NEPRA, ISMO and the Ministry of Energy. Its plan would cover existing capacity, utilization, transmission constraints and a timetable for closing gaps. The column ties this to earlier steps, including the cancellation of 9,500 MW of unnecessary projects in 2025 and IPP negotiations that the department says removed a cumulative Rs3.4 trillion burden.