The power sector in Pakistan has been experiencing unexpected doubts recently. There have been a series of policy announcements that have followed closely, such as the replacement of net metering by net billing, the adoption of fixed charges depending on authorised load, continuing tariff restructuring debates, and the growth of digital infrastructures such as artificial intelligence computing and crypto mining. Simultaneously, the global energy markets are unstable because of the geopolitical tensions in regions. Taken separately, these developments are not peculiar. Put together, though, they give the impression of a system in flux.

A large part of the political debate on these changes still focuses on electricity prices, or what some call the tariff space. Discussions revolve around unit costs, rooftop solar export rates and retail bills. While these are important, they do not capture the full transformation. Recent developments are happening at another level – the system space – where key issues include how electricity is produced, distributed, and used over time, and how the supporting infrastructure is financed and maintained. The gap between these perspectives is one reason the current situation feels........

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