As of August 30, 2025, Pakistan’s net Foreign Direct Investment (FDI) in the power sector stood at a meagre USD 86.96 million. This is despite years of effort. Numerous administrations have also attempted to privatise loss-making power distribution companies, but these initiatives have failed consistently. The underlying reason is simple: inconsistent regulatory policies that discourage potential investors while frustrating existing ones.

Consider the case of K-Electric, Pakistan’s only privatised power utility in the club of distribution companies. Recently, the National Electric Power Regulatory Authority (Nepra) announced a PKR 7.6 per unit reduction in its tariff. Remember that this is the cost-side tariff and does not impact on customer bills. The Power Division celebrated the move, calling it a “landmark decision” and expressing pride in an “in-time merit-based review” supposedly guided by “principles of equity, consistency, and sectoral sustainability.”........

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