Islamabad Unveils New Energy Policy Aimed at Attracting $5 Billion in Investment

Pakistan has introduced a new energy policy designed to attract $5 billion in investment through public-private partnerships, state-run media reported on Sunday. The initiative is expected to generate thousands of jobs and reduce dependence on imported fuel.

For years, Pakistan’s energy sector has faced major challenges, including circular debt, power theft, and transmission losses, leading to blackouts and high electricity costs. Additionally, the country’s heavy reliance on imported fuel has strained its foreign exchange reserves, pushing it to the brink of sovereign default in 2023 before securing a $3 billion bailout from the International Monetary Fund (IMF).

According to Radio Pakistan, the Special Investment Facilitation Council (SIFC) played a key role in formulating the new policy.

“A new policy has been introduced for the development and prosperity of the energy sector with the support of SIFC,” the state broadcaster reported.
“It will enable the energy sector to attract up to $5 billion in investment and allow 35% private sector participation.”

The main objective of the policy is to encourage public-private partnerships, a move aimed at boosting the energy industry. A separate video released by the SIFC revealed that the policy grants production and exploration companies the right to sell 35% of future gas discoveries to private entities through a competitive bidding process.

The SIFC emphasized that the policy would help create thousands of jobs, enhance gas production, reduce reliance on costly imported fuels, and contribute to Pakistan’s economic growth.

Pakistan established the SIFC in June 2023 as a civil-military hybrid body to attract foreign investment in agriculture, energy, livestock, tourism, mining, and minerals, among other key sectors. Since its formation, the SIFC has primarily targeted Gulf nations, securing multi-billion-dollar investment agreements.