ISLAMABAD – Federal Minister for Energy Sardar Awais Ahmad Khan Leghari met with German Ambassador Alfred Grannas on Thursday to discuss comprehensive energy reforms and bilateral cooperation. During the high-level meeting held on May 14, 2026, both officials agreed to strengthen technical ties and accelerate the transition toward renewable energy sources in Pakistan.
Minister Leghari highlighted that Pakistan currently generates 55% of its electricity from clean sources. He emphasized that the government has set an ambitious target to increase the share of clean energy to 90% by utilizing indigenous and natural resources.
DISCOs Privatization and Market Reforms
The federal government is aggressively pursuing the privatization of power distribution companies (DISCOs) to improve efficiency and reduce the circular debt. Minister Leghari confirmed that the government has entered the middle phase of this process.
Initial privatization will focus on 3 out of 11 DISCOs.
Remaining distribution companies will be included in the privatization program by next year.
The government intends to stop the practice of purchasing excess electricity, focusing instead on competitive market dynamics.
Strategic Investment in Battery Storage
Addressing the modernization of the power grid, the Minister noted that a Battery Energy Storage System (BESS) is indispensable for a modern energy infrastructure. A pilot project for LESCO, supported by German development agency GIZ, is currently under active consideration.
To support these upgrades, the government is engaging the private sector, including the Pakistan Business Council, to attract investment for the transmission network. Leghari urged German financial institutions to explore the growing investment landscape in Pakistan’s energy sector.
Germany Pledges 300 Million Euro Support
Ambassador Grannas reaffirmed Germany’s commitment to Pakistan’s climate and energy goals, referencing the existing Pakistan-Germany Climate Framework. He highlighted ongoing cooperation, including an existing 300 million Euro energy project portfolio.
The Ambassador noted that preparations are already underway for new projects in 2027. Both sides agreed to establish a dedicated Pakistan-Germany Energy Cooperation Framework to streamline future technical and financial collaborations.
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