The Private Power and Infrastructure Board (PPIB) has attracted more than $35 billion in foreign direct investment (FDI) through the commissioning of 102 Independent Power Producers (IPPs) with a combined generation capacity of 25,874 megawatts (MW).
According to the Economic Survey 2025-26 released on Thursday, PPIB as the government’s focal organization for promoting private-sector investment in power generation and transmission, facilitating Pakistan’s transition towards a diversified, secure, and sustainable energy sector through public-private partnerships and policy reforms.
During the review period, a major milestone was achieved with the commissioning of the 32 MW bagasse-based Shahtaj Sugar Mills power plant, which attained Commercial Operations Date (COD) on October 10, 2025. The plant has started supplying 126 million units of clean electricity annually to the national grid and is expected to continue generating over a 30-year lifespan.
The survey said the Prime Minister had granted in-principle approval for processing a 40 MW power project in Gwadar. The project will be procured through International Competitive Bidding (ICB) by PPIB in its capacity as Independent Auction Administrator and will be incorporated into future power planning frameworks, including the Indicative Generation Capacity Expansion Plan (IGCEP).
PPIB has also made significant progress in promoting renewable energy projects. The Public Sector Development Programme (PSDP)-funded 100 MW Gilgit-Baltistan Solar Photovoltaic (PV) Project is advancing under two streams comprising distributed rooftop solar Photovoltaic (PV) and utility-scale solar PV clusters.
PPIB has made significant strides by successfully commissioning 102 multi-fuelbased Independent Power Producers (IPPs) with a total capacity of 25874 MW, attracting over 35 billion US $ as foreign direct investment. Among these, 60 IPPs of 4,753 MW are based on hydel, solar, wind, and bagasse energy sources.
It noted that PPIB’s current development portfolio consists of 19 power projects based on multiple fuel technologies, including solar, wind, coal, hydropower, RLNG/gas, and bagasse, with a cumulative capacity of 6,536 MW. Of these, 16 projects are renewable energy initiatives, including hydropower schemes, representing approximately 84 percent of the total portfolio.
PPIB is also encouraging distributed renewable energy solutions through certification and regulation of solar installers under the AEDB Certification Regulations 2021. The board is empowered to address complaints against certified installers to protect consumer interests and ensure compliance with quality standards.
In the area of international cooperation, PPIB has been designated as the focal entity for government-to-government engagement with Uzbekistan to explore collaboration in solar and wind energy, Battery Energy Storage Systems (BESS), and Advanced Metering Infrastructure (AMI) manufacturing in Pakistan.
To address water and electricity shortages in Gwadar, PPIB and the Power Division conducted a preliminary assessment for solarizing 24 pumping stations and a desalination plant. The proposed solution includes 9.7 MW of solar PV capacity coupled with 18.26 MWh of battery storage, which is expected to generate annual savings of Rs987 million with a payback period of 2.7 years.
The survey also highlighted the Health Facilities Solar Electrification (HFSE) programme under which hybrid solar systems ranging from 10 to 25 kilowatts are being installed in 397 health facilities nationwide. The initiative is funded by GAVI, the Vaccine Alliance, with an allocation of $6 million and is being implemented by UNICEF.
Regarding distributed energy resources, the report said the government is considering a transition from net-metering to net-billing to establish a more balanced, transparent, and sustainable framework for electricity consumers and the national grid. The survey noted that PPIB continued collaboration with the Danish Energy Agency under the Danish Energy Transition Initiative (DETI), benefiting from technical assistance and knowledge-sharing on renewable energy integration, auction design, and procurement mechanisms.
On indigenous fuel development, the survey said partial supply of Thar coal to the 660 MW Lucky Electric Power Plant commenced in September 2025 and is being gradually increased, with full-scale supply expected by March 2026. Full utilization of local lignite coal is anticipated following completion of Phase III operations in the third quarter of 2026.
During the period from 1 July 2025 to 31 December 2025, significant progress was made on the conversion of the 660 MW Jamshoro Power Project to Thar coal.
The survey emphasized the strategic importance of Pakistan’s estimated 175 billion-ton Thar coal reserves for long-term energy security. So far, five Thar coal-based IPPs with a combined capacity of 3,300 MW have been commissioned through PPIB, supplying relatively low-cost electricity to the national grid.
To reduce dependence on imported fuel, efforts are underway to blend Thar coal at three coal-fired power plants established under the China-Pakistan Economic Corridor (CPEC), including the 1,320 MW Sahiwal Coal Power Project, the 1,320 MW Port Qasim Coal Power Project, and the 1,320 MW Hub Coal Power Project, with a combined capacity of 3,960 MW.