LUMS workshop calls for plan to boost local power equipment manufacturing

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Energy sector stakeholders urge a coordinated indigenization roadmap to reduce import dependence

The LUMS Energy Institute (LEI) has called for a coordinated national strategy to strengthen Pakistan’s domestic electrical power equipment manufacturing industry and reduce reliance on imports.

The institute convened the Second National Consultative Workshop on the Power Sector Indigenization Roadmap at Lahore University of Management Sciences (LUMS), bringing together officials from the Ministry of Energy, WAPDA, the National Grid Company (NGC), the Power Planning and Monitoring Company (PPMC), distribution companies, regulatory bodies, manufacturers, industry associations and academia.

The discussions focused on expanding local manufacturing capabilities, addressing barriers to localization and developing a roadmap to increase the domestic production of electrical power equipment.

Faizan Ali Shah, adviser to the Ministry of Energy’s Power Division, said local value addition of around 30% was insufficient to achieve the objectives of indigenization.

He noted that the National Electricity Plan 2023–2027 had tasked the Engineering Development Board (EDB) with submitting a formal Power Sector Indigenization Plan to the government by 2024, but the assignment remained unfulfilled.

Shah said the Power Division would now prioritise development of the plan in consultation with relevant stakeholders.

The proposed roadmap is intended to help align procurement decisions with domestic manufacturing capacity and identify opportunities to replace imported equipment with locally produced alternatives.

Dr Fiaz Ahmad Chaudhry, professor of practice and senior adviser at LEI, said an enabling environment was essential to strengthening Pakistan’s manufacturing capabilities.

He said the institute had provided a common platform for procurement agencies, manufacturers and policymakers to address industry challenges, accelerate import substitution and support the development of a globally competitive electrical power equipment industry.

Faisal Javaid Mughal, programme lead at LEI, presented an overview of potential local manufacturing opportunities, projected demand for electrical equipment over the next decade and Pakistan’s existing domestic production capabilities.

The workshop featured three consultation streams examining different segments of the power sector.

These included variable renewable energy generation equipment and battery energy storage system components, transmission lines and associated equipment, and grid stations and related equipment.

Participants discussed manufacturing readiness, barriers to localization, technology partnerships and policy measures needed to expand domestic production.

The discussions aimed to identify areas where local manufacturers could meet future demand and where additional investment, technical expertise or international partnerships might be required.

A high-level panel included Faizan Ali Shah, NGC Managing Director Altaf Hussain Malik, PPMC Managing Director Abid Latif Lodhi, GEPCO Chairman and K-Electric board member Mujahid Pervez Chattha, and WAPDA Member Power Muhammad Arfan.

Almas Haider, former chairman of the Engineering Development Board, called for coordinated efforts among key institutions to translate LEI’s preliminary findings into a practical, evidence-based and outcome-oriented Indigenization Policy Framework and Roadmap.

The workshop concluded with agreement on actionable steps to align procurement practices with national localization objectives, promote technology partnerships and advance import substitution.

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