Hunza to get 24/7 electricity under new pact with Aga Khan fund

Gilgit: The Government of Gilgit-Baltistan has signed a historic set of agreements with NPAK Energy Limited, a subsidiary of Industrial Promotion Services (IPS) — the industrial and infrastructure development arm of the Aga Khan Fund for Economic Development (AKFED) — marking the region’s first major public–private partnership in the energy sector.

Under the agreement, NPAK Energy will assume full responsibility for electricity generation, transmission and distribution in Hunza as a government-approved utility operator beginning 1 January 2026. The arrangements represent a major milestone in operationalising the long-term partnership envisioned under the original 2020 concession agreement.

According to the partnership structure, the Government of Gilgit-Baltistan will retain ownership of all energy assets in Hunza, while operational control will be transferred to NPAK Energy for 30 years. The goal is to ensure reliable, affordable and uninterrupted 24/7 electricity for all residents of Hunza — supporting economic growth, enhancing public services, strengthening climate resilience and improving living standards in one of Pakistan’s most prominent tourism regions.

As part of the collaboration, work is also underway on the Gilgit-Baltistan Energy Master Plan, which will guide future investments and identify opportunities to expand the public–private partnership model across the province.

Backed by IPS’ global expertise in clean energy, utility management and rural electrification, NPAK Energy will upgrade Hunza’s generation capacity, reinforce transmission and distribution networks and improve operational efficiency. The company will also introduce a comprehensive Corporate Social Responsibility (CSR) programme focusing on community development, environmental protection, youth skill development and other local social initiatives.

NPAK Energy reaffirmed its commitment to local employees, announcing that all current Water and Power Department staff working in Hunza will retain their existing positions. This ensures continuity and stability for employees and their families. The company also plans to invest in modern operational systems, professional training and local capacity building, creating a safe and inclusive environment where staff are recognised as central to delivering high-quality electricity services.

Through this agreement, the Government of Gilgit-Baltistan and NPAK Energy have renewed their shared commitment to expanding energy access, improving service standards and fostering regional development. The partnership is expected to reshape Hunza’s power landscape and establish a model for clean, efficient and climate-resilient utility operations in the region.

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