The government is moving to strengthen the National Electric Power Regulatory Authority (NEPRA) as more households install rooftop solar panels and electricity demand patterns change across Pakistan.

Finance Minister Muhammad Aurangzeb chaired the second meeting of the Steering Committee on Power Sector Regulatory Regime at the Finance Division on Wednesday to review reforms aimed at improving efficiency, attracting investment, promoting competition and encouraging greater private sector participation.

The committee reviewed changes in Pakistan’s power sector, including growing solar adoption and shifting electricity demand. Aurangzeb said the regulatory framework needed to keep pace with technological developments while protecting consumer interests and supporting investment and efficiency.

Participants discussed major challenges, including existing capacity obligations, changing demand on the national grid, service quality and investment constraints. They also considered ways to improve regulatory predictability, better target subsidies and create a more competitive and financially sustainable power sector.

The finance minister called for a market structure that offers clearer incentives for efficiency and service quality while creating more room for competition and private investment.

The committee also discussed the possible separation of electricity network and supply functions. Under the proposed approach, distribution network operators would focus on operating and maintaining the network, while competitive supply businesses would operate under an appropriate regulatory framework.