The government has outlined a policy to encourage foreign investors to install hydropower plants, gas-fired plants and wind power turbines in regions where there is a shortage of power. These include Sindh, Balochistan and the North West Frontier Province. Karachi is the largest commercial center and the industrial hub of the country. The KESC buys about 250 MW from two private power plants within its jurisdiction. To curb this problem, which will increase as Karachi's load consumption is rising by 11 percent a year, the government has approved several measures.
Negotiations are under way with several companies to become involved.
Both of these plants, as well as a few other small private operators, sell power to the national grid. Pakistan has 17 gigawatts of electric generating capacity. Thermal plants make up about 71 percent of this capacity, with hydroelectricity making up 28 percent and nuclear plants 1 percent. Transmission losses are about 30 percent, due to poor quality infrastructure and a significant amount of power theft. With much of the Pakistan's rural areas yet to receive electric power, and less than half of the population connected to the national grid, significant demand growth is expected in the long term, although in the short term, Pakistan has some excess generation capacity.