ISLAMABAD: The structural reforms being implemented by the National Transmission and Despatch Company (NTDC) aim to enhance accountability, efficiency, and transparency. However, their success hinges on comprehensive planning, political neutrality, and effective coordination.
This viewpoint was shared by power sector experts during a roundtable discussion titled “Evaluating NTDC Reforms: Tackling Transmission and Distribution Challenges in Pakistan”, held at the Institute of Policy Studies (IPS).
It was stated that structural changes alone will not lead to lasting improvements. The success of these reforms also depends on reducing bureaucratic influence, ensuring independent decision-making, and prioritizing national interests over institutional inertia.
The session featured keynote addresses by Dr Fiaz Chaudhry, Chairman of NTDC; Zubair Chaudhry, General Manager of Finance at the Central Power Purchasing Agency (CPPA); Afia Malik, Senior Energy Policy Expert at the Pakistan Institute of Development Economics (PIDE); and Khalid Rahman, Chairman of IPS. The session was chaired by Mirza Hamid Hassan, former Federal Secretary of Water and Power, and moderated by Ameena Sohail, an energy lawyer. Ashfaq Mehmood, former Secretary of Water and Power, also shared his views.
Providing an overview of the NTDC reforms, Dr Fiaz Chaudhry noted that the focus is primarily on structural changes. He explained that the reforms include separating the project development function into an independent Energy Infrastructure Development & Management Company to insulate it from institutional inefficiencies. The reforms also involve renaming NTDC to the National Grid Company of Pakistan (NGC-Pak) to enhance transmission service delivery efficiency. Furthermore, forming an Independent System and Market Operator would ensure neutrality and eliminate conflicts of interest.
These reforms are necessary due to persistent internal and external factors, such as weak corporate boards, ineffective governance, disregard for corporate policies, complex procurement processes, and arbitrary decision-making, all of which have undermined NTDC’s performance.
Regarding the future outlook of NTDC, Zubair Chaudhry noted that initiating reforms is a time-consuming process, but it promises several critical advantages. These include enhanced accountability through the segregation of responsibilities, ensuring that each entity is directly accountable for its specific functions. Reforms will also lead to timely project delivery, as independent companies will face direct consequences for delays, thus improving overall performance. Additionally, the reforms will introduce greater transparency and efficiency in fund allocation, particularly for transmission infrastructure development.
He emphasized the importance of understanding the broader context of Pakistan’s power sector, noting that inefficiencies or financial burdens in this sector ultimately impact consumers through increased tariffs or add to the national fiscal burden. Thus, a clear awareness of both the technical and commercial flows within the sector is essential to realizing these benefits.
In referencing her earlier study on NTDC reforms, Afia Malik pointed out that systemic inefficiencies extend beyond the challenges already mentioned. She highlighted that leadership issues, bureaucratic interventions, and inadequate human resource capacity are significant barriers to progress. Additionally, she pointed to governance failures within NTDC and other power sector boards, attributing these failures to excessive political influence and a lack of independent decision-making.
She stressed the need for coordination across all entities, warning that even with structural separation, collaboration would still be essential to achieving tangible improvements. To improve efficiency, she advocated for the adoption of advanced technologies and the implementation of export-competitive tariffs to support industrial growth.
Mirza Hamid Hassan added that mismanagement and confusion in the power sector cannot be resolved by focusing solely on isolated issues. He emphasised that flawed government planning remains a fundamental problem and that restructuring efforts will be ineffective without comprehensive reforms in all areas of planning, coordination, operations, and regulation.
In his concluding remarks, Khalid Rahman noted that the issues in the power sector are not isolated but are linked to broader governance problems, including institutional and political crises. He attributed these challenges to a deeper moral crisis at both the leadership and grassroots levels, stressing the need to prioritize collective interests and systemic reform, rather than relying on superficial restructuring.
Copyright Business Recorder, 2025
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