PAKISTAN Law and Practice Contributed by: Nadir Altaf and Muhammad Fahim Khan, RIAA Barker Gillette
following electric power services, when carried out in Sindh, require a licence from SEPRA:
iffs with several independent power producers (IPPs) to lower consumer-end tariffs and tackle high electricity prices. Facilitative regime In order to facilitate power projects being devel- oped pursuant to the government’s power pol- icy, the federal government has established the Private Power and Infrastructure Board (PPIB). Prior to the promulgation of the Private Power and Infrastructure Board (Amendment) Act 2023 (the “PPIB Amendment”), the PPIB’s role was limited to facilitating non-renewable power pro- jects and hydropower projects with capacity greater than 50 MW. Renewable projects were facilitated through a separate statutory body known as the Alternative Energy Development Board (AEDB). The PPIB Amendment merged the AEDB into the PPIB, including all of its roles and responsibilities. At the provincial level, similar bodies/depart- ments for the development of power projects pursuant to the provincial governments power policies have been set up in the following prov- inces: • Punjab – Punjab Power Development Board; • Sindh – Government of Sindh Energy Depart- ment and the Sindh Renewable Energy Com- pany (Private) Limited; • Khyber Pakhtunkhwa – Pakhtunkhwa Energy Development Organisation; and • Balochistan – Government of Balochistan Energy Department. In the case of the state of Azad Jammu and Kashmir (AJK), the AJK Power Development Organisation (AJK-PDO) has been established to facilitate power projects in the AJK.
• electric power suppliers; • generation companies; • distribution companies; and • microgrid owners.
SEPRA is also empowered to determine the tariffs for these electric power services. It is expected that other provinces may also estab- lish similar regulatory bodies. Notwithstanding the foregoing, a NEPRA licensee will also be considered a SEPRA licensee, where applicable. Council of Common Interests The Council of Common Interests (CCI) is the highest policy-making body of the federation. The CCI was established under Article 153 of the Constitution of Pakistan and consists of: • the Prime Minister, who acts as the chairman of the CCI; • the chief ministers of each province; and • three members from the federal government (to be nominated by the Prime Minister). The functions of the CCI include formulating and regulating policies in relation to electricity mat- ters and exercising supervision and control over related institutions. Special Investment Facilitation Council and the National Task Force The Special Investment Facilitation Council (SIFC) was established through the Board of Investment (Amendment) Act, 2023, to encour- age foreign investment in Pakistan in key sec- tors, including energy. Additionally, the govern- ment of Pakistan (GOP) has created a National Task Force on energy to enhance power sector efficiency. This task force has renegotiated tar-
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