UBG Chief S.M. Tanveer Rejects ISP 2025-35, Warns of ‘Financial Destruction’

KARACHI  — S.M. Tanveer, Patron-in-Chief of United Business Group (UBG) and former caretaker provincial minister, has strongly urged National Electric Power Regulatory Authority (NEPRA) to reject the Indicative System Plan (ISP) 2025-35, calling it a deeply flawed roadmap that could further damage Pakistan’s economy.

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In a statement, Tanveer said Pakistan already has an installed electricity generation capacity of 40,000 MW, while peak demand has declined to 28,000 MW. He noted that grid demand has continued falling over the last three years as consumers increasingly shift toward private solar energy systems exceeding 45 GW.

Despite this, he questioned the logic behind adding another 26,043 MW of generation capacity under the proposed plan.

“$57 Billion Expansion Will Worsen Crisis”

Tanveer warned that adding nearly $57 billion worth of new power generation and transmission infrastructure to an already burdened grid would not solve the energy crisis but instead intensify financial pressure on consumers and industry.

He revealed that 52.6 percent of electricity bills currently consist of capacity charges and claimed that the Independent System Market Operator’s (ISMO) own document acknowledges the new plan could push electricity tariffs to historic and unaffordable levels.

Transmission Losses Cost Pakistan Billions

Highlighting inefficiencies in the transmission network, Tanveer stated that 18% to 20% of generated electricity is lost due to system weaknesses.

According to him, reducing transmission losses to the international benchmark of 10% could recover nearly 19,000 GWh annually and save over Rs570 billion without requiring additional capital investment.

Criticism of WAPDA Projects and Planning Model

The UBG chief also criticized the “PLEXOS” planning model, alleging that mega hydropower projects including Diamer Bhasha and Dasu were inserted as “must-run” projects, limiting genuine cost-optimized planning.

Referring to the history of cost overruns in Water and Power Development Authority (WAPDA) projects, he said the Neelum-Jhelum project witnessed a 3,300% increase in costs, while the estimated cost of Diamer Bhasha Dam has surged to nearly Rs2,400 billion.

While recognizing the strategic importance of dams and nuclear energy for national sovereignty, Tanveer demanded strict caps on their electricity cost components.

Call for Lower Electricity Tariffs

Tanveer said both the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and UBG believe electricity tariffs should be reduced from the current Rs33.38 per unit to the global benchmark of 9 cents, with a long-term target of bringing tariffs down to 6 cents by 2035.

He urged the Prime Minister and NEPRA to send ISP 2025 (IGCEP + TSEP) back for revision, demanding transparent cost disclosures, corrected demand projections, and legally binding limits on project cost escalations.

Warning for Pakistan’s Industry

S.M. Tanveer warned that Pakistan’s industrial sector is nearing collapse due to soaring energy costs and declining competitiveness in international markets.

“Pakistan cannot afford a plan that leads to its own financial destruction,” he said.