Pakistan’s federal government has advanced the framework for its Integrated Energy Plan as part of ongoing efforts to address persistent circular debt and improve coordination across the country’s energy sector. The Cabinet Committee on Energy approved the proposed architecture, governance structure, and roadmap for the plan, which is designed to strengthen collaboration among the ministries of Power, Petroleum, and Water Resources. The initiative aligns with directives from the Prime Minister’s Office instructing the Ministry of Energy to develop an inter-ministerial coordination mechanism in consultation with both federal and provincial stakeholders. The Integrated Energy Plan is mandated under the National Electricity Policy 2021, which received approval from the Council of Common Interests.
Key inter-ministerial discussions began with a September 2025 meeting chaired by the Minister for Planning, Development and Special Initiatives, bringing together officials from the ministries of Power, Petroleum, Water Resources, and Economic Affairs. A follow-up secretary-level meeting in October 2025 reviewed the proposed Integrated Energy Planning Ecosystem and roadmap, which subsequently received approval from the Cabinet Committee on Energy. The framework includes the formation of a steering committee with clearly defined terms of reference and the establishment of an Energy Information System to integrate databases maintained by relevant ministries and organizations. This structure has received endorsement from federal ministries, all provincial governments, and Gilgit-Baltistan, as well as backing from the Special Investment Facilitation Council.
Alongside planning and coordination measures, the government continues to address circular debt in the energy sector. Oil and Gas Development Company Limited received the seventh instalment of Rs 7.725 billion from Power Holding Private Limited as part of a previously approved mechanism for settling circular debt-related interest payments. According to a notice to the Pakistan Stock Exchange, the total interest amounting to Rs 92 billion will be disbursed over twelve equal monthly instalments starting from July 2025. This payment reflects ongoing execution of the government’s plan to gradually resolve circular debt while maintaining stability in the energy market.
Officials note that the Integrated Energy Plan framework is intended to streamline decision-making, reduce operational gaps, and ensure that data and planning across power, petroleum, and water sectors are effectively coordinated. The Energy Information System is expected to provide real-time insights and facilitate more accurate forecasting and policy decisions. Meanwhile, the phased circular debt settlement continues to mitigate financial pressures on energy companies while enabling smoother operations and investment confidence. Collectively, these measures aim to support a more resilient and sustainable energy ecosystem in Pakistan.
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