Indigenisation policy yielding results: Leghari

Listen to article
The National Grid Company of Pakistan (NGC), formerly the National Transmission and Despatch Company (NTDC), in collaboration with the LUMS Energy Institute, convened the National Consultative Workshop on the Power Sector Indigenisation Roadmap at the Lahore University of Management Sciences (LUMS).
The high-profile event brought together senior leadership from the power sector, manufacturing industry, regulatory bodies, policymakers and academia to chart a cohesive national strategy for accelerating the localisation of Pakistan's electric power equipment manufacturing ecosystem.
Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari addressed the workshop through video link and commended the joint initiative, stating, "NGC is the first national entity to implement an approved indigenisation policy and its strategic procurement model is already delivering tangible results."
He urged the Water and Power Development Authority (Wapda), distribution companies (DISCOs), K-Electric and state-owned and private power generation plants to adopt indigenisation as a strategic imperative and not as a corporate social responsibility, but as a core procurement principle aligned with the National Electricity Plan 2023-27.
The minister noted that the independent system and market operator had been made fully functional and the Energy Infrastructure Development and Management Company would also be made functional soon.
A key milestone of the workshop was the launch of Pakistan's first Power Equipment Manufacturing Dashboard, developed by the LUMS Energy Institute with input from power sector stakeholders. This real-time digital tool will monitor localisation progress, assess vendor capacity and identify strategic investment opportunities under the power sector indigenisation plan.
About the dashboard, the federal minister said that its launch was a welcome step and it would help in power sector indigenisation.
NGC Board of Directors Chairman and LUMS Energy Institute's Senior Adviser Dr Fiaz Ahmad Chaudhry stated, "NGC's indigenisation strategy – anchored in policy reform and targeted educational orders – has already saved over $10 million in foreign exchange through import substitution."
He added, "Pakistan's market for static transmission and sub-stations is currently valued at around $8 million. This figure, however, does not reflect the true scale of our potential. We must work to expand this market at least threefold through strategic development, innovation and local industrial growth."
At the same time, he said, "we should set a clear target of achieving no less than $16 million in exports from this sector. That is the level of ambition we must embrace to position ourselves competitively on the global stage."
He said that under the 10-year Integrated Generation Capacity Expansion Plan (IGCEP) and the Transmission Exposition Plan, an investment of $8 billion would be needed in the transmission sector. NGC Managing Director Engineer Muhammad Waseem Younas outlined the tangible progress under the indigenisation policy. Since 2022, NGC has placed over Rs2 billion in local orders, including Rs781 million in educational orders aimed at building the industrial capacity.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Recorder

6 days ago

• Business Recorder

NEP & NE-Plan: PD accused of not providing audit documents

ISLAMABAD: The Directorate General of Audit (Power) has accused Power Division of not providing documents about National Electricity Policy 2021 and National Electricity Plan 2023-27 which are required for special audit purposes. In a letter to Secretary Power, Director Audit (Power) Meesam Abbas Khawaja, stated that he was given this audit assignment on June 02, 2025 and served three requisitions for provision of record required to satisfactorily complete the Special Audit assignmenton the implementation Status of National Electricity Policy 2021 and National Electricity Plan 2023-2027. However, no documents/auditable record had been provided so far, and Secretary Power has been requested to provide the requisite record along with supporting evidence on top priority basis to complete the assigned task within the stipulated period. The Directorate of Audit (Power) further stated that as part of ongoing review and monitoring of the National Electricity Plan implementation, the Audit is currently compiling detailed financial records to assess the effectiveness and transparency of expenditures associated with various components of the plan. In this regard, the Audit has sought comprehensive breakdown of expenditures related to the following areas: KE asks Power Div for consultation on NEP Meetings and Workshops: Total expenditure on meetings, workshops and consultations conducted in the context of the NEP & NE-Plan since 2020. A detailed list other types of meetings (e.g. planning sessions, stakeholder consultations. technical workshops) and their associated costs. Purchasing of equipment and materials: A breakdown of expenditures on the procurement of equipment materials, and technology related to the implementation of the NEP & NE-Plan. Specific details of any major equipment purchases or contracts signed for infrastructure development. Detail of expenditure for development of web-based Monitoring & Evaluation System (M&ES) may also be provided. Other miscellaneous expenditures: Any other expenditures incurred in the course of NEP & NE-Plan implementation that are not directly categorized under meetings or equipment. This includes, but is not limited to, costs associated with operational expenses, or any other relevant financial outlay. The requested details will support Audit's efforts to ensure that the funds allocated to the NEP & NE-Plan have been used effectively and in alignment with the goals and objectives set forth in the plan. Copyright Business Recorder, 2025

Business Recorder

14-06-2025

• Business Recorder

Dar says steps under way to enhance financial ties with Turkiye

ISLAMABAD: Deputy Prime Minister and Federal Minister for Foreign Affairs Ishaq Dar said that Pakistan is exploring opportunities to enhance cooperation in financial and logistics services including opening of Turkish banks in Pakistan to support bilateral trade flows. In a written reply to a question in the National Assembly on Friday, the minister said that in support of these efforts, the government is also planning to convene the 6th session of the Pakistan-Turkiye Joint Ministerial Commission (JMC) in Islamabad, revitalising institutional framework for economic cooperation. He said that Turkiye has also expressed strong interest in investing in Pakistan's Special Economic Zones (SEZs). He said that in response, the prime minister has directed the Board of Investment to develop a dedicated investment package for Turkish investors. He said that Pakistan wants to enhance trade and investment cooperation with Turkiye, in line with mutually agreed target of $5 billion by 2025. He said that bilateral trade volume currently stands at approximately $1.02 billion. He said that Pakistan's growing IT sector over $2.6 billion in exports annually, presents substantial opportunities for Turkish investment and joint ventures. He said that Turkish companies are being invited to participate in the Jinnah Medical Complex Project, which aligns with both countries' vision for accessible healthcare. In another written reply to a question, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari said that renegotiating agreements with 36 IPPs (Independent Power Producers) and GPPs, leading to a reduction in the consumer end tariff. He said that the government has also terminated contracts of 06 IPPs leading to saving in capacity cost reduction. He said that the government saved Rs3.612 trillion over the life of the projects through these renegotiations. He said that the negotiations with remaining IPPs are under process and the relief shall be passed on to the consumers once the negotiations are finalised. The minister said that the amount of the circular debt as of March 2025 is Rs2,396 billion. He said that the matter relating to circular debt is being managed under Circular Debt Management Plan (CDMP). Moreover, efforts are being made by the Task Force/ Ministry of Energy (Power Division)/Ministry of Finance to curtail the circular debt. He said that further, an amount of Rs1.2 trillion is being arranged to finance/ refinance the current stock of circular debt. He said that the tenure of this loan will be six years with the interest rate at 6-months KIBOR minus 0.9 per cent. He said that the same will be paid through the Debt Service Surcharge collected from the electricity consumers. Copyright Business Recorder, 2025

Express Tribune

14-06-2025

• Express Tribune

Blacklisted firm declared eligible for NGC tender

The National Grid Company (NGC) has declared a blacklisted firm eligible to participate in a tender for a 135-kilometre transmission line project. According to details, NGC issued a tender for laying a 135-km transmission line. Four companies were declared eligible after a technical evaluation. A company previously blacklisted by the Asian Development Bank for indulging in fraudulent practice and furnishing fake documents was also declared eligible after the technical evaluation. Interestingly, a blacklisted firm cannot be declared eligible for participating in any tender. In a letter sent to NGC managing director, a Saudi investment company said the firm came to Pakistan for making investment over the invitation of the government but the blacklisted company was declared eligible, which amounts to irregularity. The incident raised the question mark on the transparency in the NGC tender process. The Saudi company demanded that investigation be conducted into the matter for restoring the confidence of foreign investors. Sources said some NGC officials are changing rules to declare the blacklisted company eligible. When Express News contacted NTDC MD Engineer Shahid Nazeer over the matter, he said the letter of Saudi company was forwarded to procurement and contract management department.