PD moved to monetise transmission infrastructure

ISLAMABAD: The Power Division has reportedly been approached with a proposal to monetise the existing national transmission infrastructure through the issuance of investment units to overseas long-term investors, well-informed sources told Business Recorder.Dominari Securities LLC, a New York-based financial advisory and wealth management firm, has proposed a framework aimed at unlocking capital tied to the national grid without privatisation or additional fiscal burden on the government.In a communication to Syed A Hadi, Senior Advisor (Capital Markets) at the Special Investment Facilitation Council (SIFC), Farooq Awan of Dominari Securities LLC shared a policy brief prepared for the Federal Minister for Power.READ MORE: NGC energises 500kV transmission line to evacuate 2,200MW from Karachi nuclear plantsThe brief outlines a proposed structure for monetising existing transmission assets by issuing Transmission Investment Units to overseas institutional investors.The objective of the framework is to catalyse urgently required grid investments without privatisation, tariff increases, or additional sovereign borrowing.The proposal envisages retaining full public ownership, regulatory oversight, and operational control of the national transmission system, while mobilising overseas capital backed by existing, regulator-approved transmission revenues.Given SIFC’s mandate to facilitate strategic investments and mobilise non-fiscal capital for priority infrastructure sectors, the proposal aligns with ongoing efforts to attract overseas institutional funding, accelerate critical grid upgrades, and address systemic constraints affecting energy security and economic growth.A briefing note for the Power Minister, Sardar Awais Ahmad Khan Leghari stated that the purpose of the proposal is to establish a policy framework for monetising existing transmission infrastructure through the offering of investment units to overseas investors, while maintaining complete public-sector control of the national grid.The proposal highlights that the national transmission network requires sustained capital investment to evacuate generation, reduce congestion and technical losses, and ensure system reliability.However, fiscal constraints and limits on sovereign borrowing necessitate alternative, non-fiscal capital solutions.Under the proposed framework: (i) 100 percent public ownership would be retained under the National Grid Company (NGC) ;(ii) economic returns of selected, mature 500 kV and above corridors would be ring-fenced ;(iii) transmission investment units would be offered to overseas long-term investors and ;(iv) Existing NEPRA-approved transmission revenues would be utilised as the underlying revenue stream.The proposal emphasised that there would be no privatisation of NGC or its assets, no increase in consumer tariffs, no transfer of dispatch or system control, and no creation of new sovereign guarantees.Under Phase I, the scope would include NGC-owned 500 kV and above AC corridors such as Tarbela–Gatti, Gatti–Multan, Multan–Guddu, Guddu–Dadu-Jamshoro, and the K-2/K-3 evacuation lines.The privately developed HVDC Matiari-Lahore line and the 765 kV Dasu corridor would be excluded from the initial phase.Dominari Securities has recommended establishing a formal policy framework, authorising consultation with the Nepra on asset-level revenue attribution, and proceeding with a Phase-1 pilot project.Copyright Business Recorder, 2026

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