Islamabad Capital Territory

Pakistan’s electricity consumers are facing billions of rupees in additional costs because transmission constraints are preventing cheaper power generated in Sindh and southern Pakistan from reaching major consumption centres in the north. The National Grid Company (NGC), formerly known as the National Transmission and Despatch Company (NTDC), has struggled to transfer available electricity from Thar coal, nuclear and wind sources. As a result, the power system relies more heavily on costlier generation from regasified liquefied natural gas (RLNG) and imported coal, adding to already high electricity tariffs.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has criticised the proposed 2027 Power Purchase Price reference, calling for accountability over transmission-related inefficiencies. In its response to the Central Power Purchasing Agency’s petition, the business body said consumers should not bear the cost of a transmission network that cannot deliver cheaper electricity despite available generation capacity. The FPCCI also raised concerns about proposed increases in fixed charges, particularly capacity payments. It argued that additional revenue should not be used to sustain disproportionately high salaries, benefits and administrative expenses for senior officials in power sector entities.

The industry body cautioned that a proposed reduction in variable electricity charges could give the impression of lower tariffs while shifting more of the burden onto consumers through higher fixed charges. At a National Electric Power Regulatory Authority hearing on the June 2026 fuel cost adjustment, transmission constraints were reported to have imposed an annual financial burden of more than Rs 400 billion.

Based on the projected generation of 130,081 gigawatt-hours, that burden amounts to an estimated Rs 3.07 per unit, increasing costs for households and businesses.
Generation costs underline the potential savings from improved transmission. In June 2026, the fuel cost of RLNG-based electricity was Rs 35.5087 per unit, compared with Rs 11.4629 for Thar coal and Rs 2.8501 for nuclear power. Replacing RLNG generation with Thar coal could lower fuel costs by about Rs 24 per unit, highlighting the financial impact of transmission constraints that prevent cheaper electricity from reaching consumers.

Prime Minister Shehbaz Sharif inaugurated the Kashmir Chowk Underpass in Islamabad on Thursday, opening a Rs 1.45 billion project designed to ease traffic congestion in the capital.

The 500-metre underpass was completed in 27 days through round-the-clock construction, the prime minister said at the inauguration ceremony. He congratulated Interior Minister Mohsin Naqvi, the Capital Development Authority (CDA), project officials and contractors on the rapid completion.
The wider development includes a four-kilometre road network, two monuments and thousands of newly planted trees.

Shehbaz Sharif said the project would improve traffic flow around Kashmir Chowk, particularly as Islamabad prepares to host the Shanghai Cooperation Organization (SCO) conference next year.
The prime minister also said the project was completed transparently and in accordance with government procurement rules. Its final cost was 2.5 per cent below the estimated amount, he added.

The National Accountability Bureau (NAB) Islamabad/Rawalpindi has helped resolve a longstanding dispute over the mining lease for pozzolan in Gaini, Diamer district, Gilgit-Baltistan. NAB said the development secured national resources valued at Rs 123 billion. The Gilgit-Baltistan government has decided to grant a new lease to WAPDA and the Diamer Bhasha Development Company (DBDC). The initiative was taken on the directions of NAB Chairman Lt Gen (Retd) Nazir Ahmed.

Pozzolan is a volcanic material that can be blended with cement to produce roller-compacted concrete. According to WAPDA, extraction and transportation of the material from Gaini began on September 25. It will be processed for use in the main structure of the Diamer-Bhasha Dam, paving the way for roller-compacted concrete placement at the project site.

NAB’s statement did not specify how the dispute was resolved or how the value of Rs 123 billion was calculated. However, at a meeting on strategic water projects chaired by the prime minister in December 2025, the Gilgit-Baltistan administration was directed to hand over reservoir land in Gaini to WAPDA and cancel leases granted within the reservoir area. The meeting also said that, if required, leases for pozzolan deposits outside the reservoir limits could be considered under the applicable rules, while WAPDA was directed to pay royalties to the Gilgit-Baltistan government in accordance with the law.

The prime minister’s earlier directives also called for preventing any party from interfering in Gaini’s pozzolan-related matters to avoid disruption to material supplies for the Diamer-Bhasha and Dasu projects. According to NAB, resolving the dispute and deciding to grant a new lease has cleared the way for continued mining and supply of pozzolan for the major water project.