Pakistan Moves Towards Power Sector Indigenization to Reduce Import Dependence
The LUMS Energy Institute (LEI) has hosted its Second National Consultative Workshop on the Power Sector Indigenization Roadmap in Lahore, bringing together government officials, power-sector institutions, manufacturers, regulators, industry representatives and academics. The workshop aimed to strengthen Pakistan’s domestic electrical equipment manufacturing industry, reduce reliance on imported products and develop a coordinated strategy for local production. Building on the first workshop held in May 2025, the initiative has progressed towards a detailed assessment of power-sector demand and domestic manufacturing capabilities.
During the workshop, Faizan Ali Shah, Advisor to the Ministry of Energy (Power Division), highlighted the need to increase local value addition, noting that the existing level of 30 per cent was insufficient to achieve the country’s indigenization goals. He also pointed out that the Power Sector Indigenization Plan mandated under the National Electricity Plan 2023–2027 had not been completed as scheduled. The Ministry of Energy will now prioritise developing the plan in consultation with relevant stakeholders, while LUMS reaffirmed its commitment to evidence-based policymaking and industrial development.
The workshop featured three consultation streams covering variable renewable energy equipment and battery energy storage systems, transmission lines and related equipment, and grid stations and associated products. Manufacturers presented their proposed products and development plans, while procuring agencies shared future demand projections. Discussions focused on local manufacturing capacity, technology partnerships, production challenges and policy measures needed to expand domestic industry. Participants also examined opportunities to align procurement requirements with locally manufactured products.
The consultations concluded with agreement on practical steps to advance import substitution, strengthen technology partnerships and develop a phased product localisation plan. The findings will contribute to the proposed Pakistan Power Sector Indigenization Policy, including its policy framework and roadmap. LEI officials emphasised the importance of collaboration among government institutions, power utilities and manufacturers to build a competitive domestic electrical equipment industry and support Pakistan’s long-term energy sector development.
