Present market composition, size and structure as well as the regulatory regime have been assessed with an assessment of likely market trends in short and medium term to map strategic positioning of the company. Pakistan power sector is under severe demand pressure and is likely to remain so until a foreseeable future.

Thermal power is more expensive as compared to hydro power. Gas is a cheaper fuel for power generation in Pakistan but gas reserves are depleting and new discoveries are not on the horizon. Furnace oil is more expensive and exposed to price volatility. Increased dependence of power sector on furnace oil in the recent years has impacted electricity price in the country. However, until power mix shifts back in favor of hydro power and new gas discoveries are made, oil fired plants are expected to remain in full possible production, constrained only by affordability factors. Any expansion in oil fired capacity is therefore not likely to be a right direction.