National Real Estate News

Islamabad | ReNews Pakistan

The National Electric Power Regulatory Authority (NEPRA) has proposed a new regulatory framework allowing federal and provincial governments to establish standalone electricity systems in selected areas where conventional distribution networks face persistently high losses, poor bill recovery, inadequate service quality or economically unsustainable operating costs.

The proposed National Electric Power Regulatory Authority Standalone Electric Power System (Pilot Projects) Regulations, 2026, aim to introduce alternative electricity supply arrangements independent of the national or provincial power grid.

NEPRA has released the draft regulations for public consultation, inviting government institutions, electricity consumers and other stakeholders to submit their comments and recommendations to the regulator's registrar within 30 days of publication.

Under the proposed framework, standalone electricity systems may include power generation facilities, energy storage equipment and associated electrical infrastructure. However, these systems would operate without any direct or indirect connection to the national or provincial electricity grid.

The initiative is intended for areas where traditional electricity distribution arrangements have become financially or operationally difficult to maintain because of high distribution losses, poor revenue recovery, inadequate services or the high cost of maintaining conventional networks.

The draft regulations provide that either the federal government or a provincial government would act as the sponsoring authority for an alternative electricity supply scheme.

With the consent of the relevant distribution company, the sponsoring government could notify a designated area for the establishment of a standalone electricity system.

Following notification, the designated area would be excluded from the licensed service territory of the existing distribution company and the relevant supplier of last resort.

The proposed regulations would initially allow a maximum of two pilot projects for each distribution licensee. However, NEPRA could approve additional projects upon a request from the sponsoring government.

Each proposed scheme would be required to provide detailed information about its geographical coverage, technology, implementation schedule, participating institutions, costs, safety arrangements and expected public benefits.

The framework also places emphasis on consumer protection and service quality.

Implementing agencies would be required to establish minimum service standards covering electricity availability, supply capacity, fault rectification, equipment replacement timelines and consumer complaint resolution.

Prior consultation with affected consumers and advance notification would also be mandatory. The schemes would need to address arrangements for providing electricity to future consumers within the designated areas.

According to the draft, the federal or relevant provincial government would finance standalone electricity systems either fully or partially, depending on the approved cost-sharing arrangements.

Karachi | ReNews Pakistan

The State Bank of Pakistan (SBP) has revised investment regulations for banks and development finance institutions (DFIs), introducing updated limits on investments in companies, startups, mutual funds, Real Estate Investment Trusts (REITs) and private equity funds.

According to a circular issued on October 23, 2026, the central bank has amended Regulation R 6 of the Prudential Regulations for Corporate and Commercial Banking to regulate equity investments and strengthen financial risk management.

Under the revised framework, the aggregate investment of a bank or DFI in the shares of a single company must not exceed the lower of 5% of its Tier-I capital or 10% of the investee company's paid-up shares.

The SBP has also specified investment limits for startups, including financial technology companies. Banks and DFIs may invest up to Rs 500 million or 5% of their Tier-I capital in a single startup, whichever is lower.

Investment ceilings have also been specified for mutual funds, Real Estate Investment Trusts and private equity funds. Under the revised rules, investment in any single fund must remain within the lower of 5% of the financial institution's Tier-I capital or 20% of the fund's total units.

The revised limits are also relevant to Pakistan's real estate investment sector, particularly REITs, which provide a regulated investment structure for property-related assets and projects.

The new framework could influence how banks allocate capital to real estate investment vehicles and other investment funds, depending on their available capital and existing investment exposure.

The central bank has further directed banks and DFIs to maintain formally approved policies governing equity investment decisions, supported by internal evaluation procedures.

These assessments must take into account the institution's financial position, overall investment portfolio, risk appetite, expected returns, professional expertise and business strategy, including an appropriate exit strategy.

Under the revised regulations, strategic investments and investments in mutual funds and private equity funds will also be included when calculating applicable aggregate investment limits.

However, units of the National Investment Trust (NIT) will remain excluded from these limits until its privatisation.

The SBP has specified that Tier-I capital calculations will be based on the preceding half-yearly reviewed or annual audited financial statements of the concerned bank or development finance institution.

The regulatory changes establish investment ceilings while requiring financial institutions to assess potential risks and expected returns before making equity investment decisions.

The central bank has clarified that all other existing instructions relating to the subject will remain unchanged.

Islamabad | ReNews Pakistan

The federal government has introduced a bill in the National Assembly seeking to merge the Privatisation Commission and the Public-Private Partnership Authority (P3A) into a single institution responsible for privatisation transactions and public-private partnership projects.

Under the proposed legislation, the new Privatisation and Public Private Partnership Commission (PPPPC) would oversee the sale and transfer of state assets and facilitate, assess and monitor private sector participation in public infrastructure and services.

The bill seeks to amend the Privatisation Commission Ordinance 2000 and repeal the Public Private Partnership Authority Act 2017. If enacted, the existing P3A would be dissolved and its responsibilities transferred to the newly constituted commission.

According to the government, the proposed merger is intended to eliminate overlapping institutional functions, streamline decision making and improve the efficiency of privatisation and public private partnership transactions.

The proposed commission would be headed by incumbent Privatisation Commission Chairman Muhammad Ali. Its board would have a majority of private-sector members, including at least two women, with fixed terms and specified conditions for disqualification and removal.

The legislation proposes placing four funds under the commission's administration: the privatisation fund, public contribution fund, viability gap fund and PPP project development fund.

These funds could receive allocations from the federal budget, international financial institutions, investment income and other permissible sources. They would be non-lapsable, allowing unspent balances to remain available beyond the financial year.

The public contribution fund would help meet government obligations associated with PPP projects, including land acquisition, site handover and the provision of rights of way.

The bill also proposes a federal pipeline of PPP projects, a formal approval mechanism, a risk management unit and dedicated committees to supervise project transactions.

Under the proposed framework, the commission could require government agencies to provide complete details of existing, planned and proposed projects within 15 days, including projects not formally classified as PPP initiatives.

The proposed law provides that agreements between public and private partners would be treated as public documents. Interested individuals could obtain copies, subject to applicable laws. However, the government, commission and relevant agencies would not be liable for private-party claims involving risks not expressly covered by a PPP agreement.

Another significant provision seeks legal and investigation immunity for serving and former chairmen, secretaries, board members, officials and consultants in relation to actions or omissions undertaken in good faith. The bill also proposes the use of public funds to defend proceedings covered by these protections.

Existing contracts executed by the P3A would transfer to the new commission without adversely affecting the contractual position of private parties.

The draft legislation further provides that employees, advisers and consultants of the existing authority would be retained for up to six months or until the expiry of their respective contracts, whichever occurs first, on terms no less favourable than their existing conditions.

If approved, the legislation could significantly reshape the federal government's approach to privatisation, infrastructure investment and public-private partnership management. Its implementation, however, remains subject to completion of the legislative process.