The Asian Development Bank (ADB) has given policy recommendation to government of Pakistan to improve the energy sector and to resolve the outstanding issues being faced by the sector. A latest report published by the ADB titled “CAREC Energy Outlook 2030” recommended to continue energy sector reforms via privatization and develop competitive markets further. The shift towards a competitive energy market for both electricity and natural gas should continue, with clearly adopted legislation to ensure efficient implementation. It also recommended to gradually decrease energy subsidies for generation and distribution. This can potentially be achieved by revising the existing tariff structure to allow higher returns for T&D companies, thereby decreasing circular debt while enabling larger infrastructure investments.