NPAK is excited to lead the shift toward climate-resilient, low-carbon energy systems in Hunza.

Gilgit, 23 November 2025 – The Gilgit Baltistan Energy Development Organization (GBEDO) and NPAK Energy Limited (NPAK Energy), a subsidiary of Industrial Promotion Services (IPS) of the Aga Khan Fund for Economic Development (AKFED), today signed a set of agreements formally enabling NPAK Energy to begin operations as the utility operator responsible for power generation, transmission, and distribution across the Hunza District, effective from January 1st 2026. These agreements mark a significant milestone in the implementation of the long-term public-private partnership established under the original Concession Agreement between the Government of Gilgit-Baltistan and NPAK Energy in 2020. Under this Concession Agreement, the Government retains ownership of energy assets in Hunza while transferring operational responsibilities to NPAK Energy for a duration of 30 years.

The primary objective of this partnership is to provide reliable, affordable, and uninterrupted 24/7 electricity to the residents of Hunza. This initiative will support economic development, enhance service delivery, strengthen climate resilience, and improve the quality of life for communities in one of Pakistan’s most important tourist destinations. As part of the broader collaboration between the Government of Gilgit-Baltistan and NPAK Energy, an Energy Master Plan for Gilgit-Baltistan is currently under development. This plan will guide future investments and inform opportunities for expanding the public-private partnership model across the province.

As a subsidiary of IPS, the industrial and infrastructure development arm of the AKFED, NPAK Energy brings decades of global experience in clean energy, utility management, and rural electrification. In partnership with the Government of Gilgit-Baltistan and development partners, NPAK Energy will expand Hunza’s power generation capacity, upgrade and strengthen transmission and distribution networks, and improve operational efficiency. The company will also introduce a Corporate Social Responsibility programme to support community development, environmental stewardship, youth skills training, and other local initiatives.

NPAK Energy is committed to the well-being and development of the local employees. All current staff working in Hunza under the Water and Power Department will retain their positions, ensuring continuity and stability for employees and their families. The company will invest in local capacity through training, professional development, and modern operational practices, while fostering a safe and inclusive work environment where employees are recognised as central to delivering reliable, high-quality services to the people of Hunza. With the signing of this agreement, the Government of Gilgit-Baltistan and NPAK Energy reaffirm their shared commitment to reliable energy access, regional development, and improved service standards. This partnership marks a significant step toward transforming Hunza’s energy landscape and positioning the district as a model for clean, efficient, and resilient utility operations.

NOTES

The Aga Khan Fund for Economic Development (AKFED) is an international development agency dedicated to promoting entrepreneurship and building economically sound enterprises in parts of the developing world that lack sufficient foreign direct investment. It also makes bold but calculated investments in situations that are fragile and complex. It is part of the Aga Khan Development Network.

Industrial Promotion Services (IPS) is the infrastructure and industrial development arm of AKFED. IPS has invested in over 1000MW of power generation in Africa and Asia.

Aga Khan Development Network in Pakistan

Institutions of the Aga Khan Development Network (AKDN) have been operating in Pakistan since 1905. Today, it operates activities aimed at improving the overall quality of life in the regions in which AKDN works. Initiatives range from rural development and financial inclusion to advanced medical research and access to quality education, meeting both immediate needs and investing in Pakistan’s future. AKDN programmes have been replicated in every province in Pakistan as well as in neighbouring countries.

“NPAK is the affiliated and associated company of Industrial Promotion Services (IPS).”

NPAK CEO Imran Halim and WPD Secretary Safdar Karim signing the 30-year concession agreement