Prime Minister Shehbaz Sharif has appointed retired Lieutenant General Zafar Iqbal as special assistant on energy. The appointment gives him the status of a minister of state and takes effect immediately. According to an official notification, he will oversee the power and petroleum divisions.
Iqbal has already been supervising both divisions as head of the National Coordination and Management Council (NCMC). The government established the council in April to coordinate key energy and petroleum matters. Its responsibilities include managing imports of crude oil, petroleum products, liquefied natural gas and liquefied petroleum gas.
The council also oversees petroleum product exports and sets priorities for power generation. Meanwhile, the power and petroleum divisions remain under Federal Ministers Sardar Awais Khan Leghari and Ali Pervaiz Malik, respectively. Iqbal’s new role adds another layer of coordination across the two divisions.
The NCMC replaced the national coordination committee on prices, which Finance Minister Muhammad Aurangzeb previously led. Authorities formed the council after the Strait of Hormuz closed following US-Israeli attacks on Iran on February 28. The disruption raised concerns about energy imports and supply management.
Successive governments have considered merging the power and petroleum ministries to improve coordination. However, former prime minister Shahid Khaqan Abbasi placed both ministries under the newly created Ministry of Energy as separate divisions. Later PML-N governments continued appointing separate federal ministers to lead them.
Read more: PM Shehbaz orders winter gas load management plan
Iqbal previously led negotiations with private and state-owned power producers through a national energy task force. He also negotiated with commercial banks to secure Rs1.225 trillion in loans for payments owed to independent power producers. The government planned to finance these payments through projected savings of around Rs4 trillion over 30 years.
The renegotiations were expected to reduce consumer electricity tariffs by a net 33 paisa per unit. However, the loans also carry a debt-servicing surcharge of Rs3.23 per unit for six years. The surcharge adds to consumer bills, while Iqbal’s appointment places him in a role overseeing major power and petroleum issues.