National Grid Company of Pakistan Limited (formerly National Transmission and Despatch Company Limited,) also known as ("NGC" or "the Company"), is a public unlisted company, incorporated in Pakistan on November 06, 1998. The registered office is situated at WAPDA House, Lahore.

Following the unbundling of WAPDA, the National Transmission and Despatch Company Limited (NTDC) was incorporated as an unlisted public company on November 6, 1998. Under the first Business Transfer Agreement (BTA-I) dated March 1, 1999, NTDC assumed ownership of the assets, rights, and obligations pertaining to WAPDA’s transmission segment. As part of continued power sector reforms, a second agreement (BTA-II) was executed on June 3, 2015, between NTDC and Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), through which NTDC transferred its commercial operations and contract registration functions to CPPA-G.

NTDC was initially granted a 30-year transmission license by the National Electric Power Regulatory Authority (NEPRA) on December 31, 2002. However, on March 21, 2023, NEPRA issued a modified license, separating NTDC’s responsibilities into two distinct roles: a Transmission License for transmission business and a System Operator License for system operations. Under this revised framework, NTDC was required to separate the system operator function through the establishment of a new legal entity and transfer the corresponding license. This was to be completed in two phases: functional separation within three months of license issuance and legal separation no later than two years.

In line with this requirement, a new entity — Independent System and Market Operator of Pakistan (Guarantee) Limited (ISMO) — was incorporated on December 4, 2024. Subsequently, the third Business Transfer Agreement (BTA-III) was signed on April 14, 2025, between NTDC (now renamed the National Grid Company of Pakistan Limited – NGC) and ISMO, providing for the transfer of assets, liabilities, and personnel related to the National Power Control Center (NPCC), effective from the date of system operator license transfer. NEPRA formally transferred the license to ISMO on April 30, 2025.

As a result of this unbundling and broader restructuring initiative—led by the Government of Pakistan with the support of development partners—NTDC has now been restructured into three distinct entities:

1- National Grid Company of Pakistan Limited (NGC), as the legal successor of NTDC,

2- Independent System and Market Operator (ISMO), and

3- Energy Infrastructure Development and Management Company (EIDMC).

The NGC is responsible for the transmission of electricity across Pakistan through its 220 kV and 500 kV network. It ensures reliable and efficient delivery of power from generation sources to distribution companies. NGC also plans and develops the national grid, manages transmission assets, and executes system expansion projects, including those funded by development partners. While real-time system operations have been transferred to ISMO, NGC continues to support grid functionality and compliance with regulatory standards.

NGC is 88% owned by the GoP through Ministry of Energy (Power Division). Whereas, 12% shares are owned by employees of the Company under the "Benazir Employee Stock Option Scheme" (BESOS).

The NGC stands as a key pillar of Pakistan’s power sector, with its stability anchored in strong government sponsorship and ownership. NGC owns and operates Pakistan’s high-voltage transmission network—comprising 220 kV and 500 kV lines and grid stations—which serves as the backbone of the national power system. This expansive infrastructure plays a critical role in delivering electricity from generation companies to distribution companies across the country.

The Government of Pakistan (GoP), acting through the Ministry of Energy (Power Division), provides NGC with strong institutional backing, policy continuity, and regulatory alignment—critical factors for long-term stability. The government's commitment to structural reforms in the power sector, as demonstrated through the unbundling of NTDC into NGC, ISMO, and EIDMC, reflects a clear direction towards enhanced governance, transparency, and operational efficiency. These reforms are aligned with international best practices and signal a forward-looking approach by the GoP to modernize the transmission segment. NGC, as a government-owned entity operating under this strategic vision, is well-positioned to benefit from continued sectoral improvements, targeted investments, and policy support aimed at strengthening the national grid and enabling energy security.

As a fully state-owned entity, NGC benefits from sovereign support, regulatory protection, and access to concessional funding from development partners. This backing not only reinforces its financial profile but also ensures continuity in policy alignment and long-term strategic planning.

The Board of Directors consists of ten seasoned professionals with diverse expertise spanning energy, finance, and public sector governance. The Board includes five independent directors, while the remaining members represent the Ministry of Energy (Power Division), PPIB, and CPPA-G. This composition facilitates informed decision-making and ensures alignment with sectoral policies and regulatory priorities.

The Board of Directors of NGC has been reconstituted by the Federal Government of Pakistan. Dr. Fiaz Ahmad Chaudhry has been appointed as Chairman, while Engr. Muhammad Shahid Nazir currently serves as the Acting Managing Director. The reconstituted Board includes Mr. Naweed Akhtar Sharif, an independent director with a business background, and Mr. Naveed Arshad, an Associate Professor at LUMS, also serving as an independent director. In addition, the Board comprises other seasoned professionals with diverse technical and managerial expertise, representing a broad spectrum of experience in the energy and infrastructure sectors. Their collective expertise significantly enhances the Company's governance framework and strategic direction.

The Board of Directors operates through four dedicated committees:

i) Audit, Finance, Investigation, Financial Risk Management, and Internal Control Committee,

ii) Human Resources, Legal, and Miscellaneous Matters Committee,

iii) Procurement Committee, and

iv) Technical, Initiatives, Development, Operational Risk Management, and Operations Committee.

Each committee has clearly defined Terms of Reference (TORs) and plays a vital role in maintaining a robust control environment within the organization. Throughout FY 2023-24, the Board and its committees held regular meetings to guide and support the management in achieving strategic and operational objectives.

For the financial year 2023–24, the Company appointed Yousaf Adil & Co., Chartered Accountants as its external auditors. The auditors issued an unqualified opinion on the financial statements, as the issue related to the provision for the Workers' Profit Participation Fund (WPPF) was appropriately resolved during the year.

NGC operates under a well-defined organizational structure. The Managing Director, Chief Internal Auditor, and Board Committees function under the oversight of the Board of Directors. Six core operational departments—Asset Development & Management, Finance, Legal, Security Operations, Procurement & Engineering, Human Resources, and Information Technology—are led by Chief Officers or Deputy Managing Directors, all of whom report directly to the Managing Director. This structure ensures effective management, operational control, and accountability across key functional areas.

Engr. Muhammad Shahid Nazir serves as the Managing Director of NGC. The management team comprises seasoned professionals with deep institutional knowledge and relevant sectoral expertise. Their longstanding association with the Company enhances operational continuity and supports the execution of strategic initiatives.

The Company follows a well-structured management process with clearly defined departmental responsibilities across key functions such as operations, finance, and regulatory affairs. Regular coordination meetings and active support from the Board ensure effective oversight and strategic alignment. A sound internal control framework further reinforces transparency, accountability, and risk management.

NGC has initiated the process to achieve Digital Transformation by implementing ERP with an aim to achieve Business Automation of the Company’s processes. M/S Siemens, Pakistan is responsible to supply, design and implement the ERP in the Company. The ERP consists of Business Intelligence Analytics along with modules of Project Delivery and Asset Management supported by the modules of Finance, Supply Chain and Human Resource. A.F.Ferguson & Co. has been engaged as the quality assurance consultant for ERP implementation.

NGC maintains an effective control environment with defined policies and procedures. The Company’s internal audit function performs regular reviews on the financial, operational, and compliance controls and reports directly to the audit committee for all critical issues.

Pakistan’s power sector is currently undergoing significant reform, with a focus on unbundling and increased private sector participation. While generation has seen substantial private investment and distribution remains largely with state-owned DISCOs (except for K-Electric), the transmission segment is now gradually evolving. Historically, the National Transmission and Despatch Company (NTDC)—now restructured as the National Grid Company (NGC)—has been the sole operator of the national transmission network at 220 kV and 500 kV. However, recent developments signal a shift towards diversification and private involvement in the transmission space. 

K-Electric, which operates as an integrated utility in Karachi, manages its own transmission network and continues to invest in strengthening interconnection points with the national grid to enhance system stability. In parallel, the ±660 kV Matiari–Lahore HVDC transmission line, developed by Pak Matiari-Lahore Transmission Company under CPEC, stands as Pakistan’s first privately owned and operated transmission line, functioning under a Transmission Service Agreement (TSA) with guaranteed returns. 

Additionally, NEPRA has begun issuing provisional transmission licenses to private and project-specific entities, such as those developing interconnection lines for renewable energy projects. These developments indicate a clear shift towards a more open and competitive transmission framework, where private sector participation is gradually being enabled under regulatory oversight.

Among the various operational transmission entities in Pakistan, the NGC holds a leading position in terms of scale, ownership, and institutional capacity. As a wholly state-owned entity under the Ministry of Energy (Power Division), NGC operates the largest segment of the national transmission network, spanning 21,355 kilometers and comprising 70 grid stations (18 at 500kV, 50 at 220kV, and 2 at ±660kV), with a total transmission capacity of 67,940 MVA. With decades of experience and deep technical expertise, NGC not only manages the national grid but also plays a pivotal role in supporting and guiding other transmission operators, including project-specific and private licensees, through technical coordination, system planning, and integration support.

NGC reported a slight increase in topline, reaching PKR 53,076 million during 9MFY25, compared to PKR 52,435 million in 9MFY24 (FY24: PKR 71,402 million; FY23: PKR 73,861 million). Given that NGC operates under a cost-plus model, its transmission tariff is primarily based on return on investment, rather than volume of energy transmitted. Therefore, changes in electricity generation or energy throughput do not materially impact its topline. Instead, revenue growth is driven by the size and execution of the approved investment plan. 

Under this regulatory framework, NEPRA reviews and approves NGC’s multi-year investment plans, based on which a transmission tariff is determined and charged to power purchasers (primarily distribution companies). Any deviation in actual investment from the approved plan is adjusted in subsequent tariff determinations. 

Currently, a transmission tariff of Rs. 235.30/kW/month is being applied, as per NEPRA’s notification dated October 28, 2022, and is applicable for the three-year control period FY23–FY25. For this period, NEPRA approved an investment plan of PKR 352 billion, while the actual investment by NGC stands at PKR 385 billion, resulting in a higher tariff requirement. 

To address prior under-recoveries (amounting to approximately PKR 60 billion) and reflect the updated investment profile, NGC has submitted a new tariff proposal of PKR 667/kW/month, which is currently under NEPRA’s review. During FY25, Transmission and Transformation (T&T) losses were recorded at 3,432.19 GWh, equivalent to 2.569% of transmitted energy—slightly higher than 3,377.4 GWh (2.524%) in FY24, yet still within the NEPRA-approved limit of 2.639%.

As a power transmission company, NGC does not incur direct costs of goods sold. Its cost structure mainly comprises operating expenses related to energy transmission. During 9MFY25, the Company’s profitability improved, with profit after tax reaching PKR 5,351 million compared to PKR 458 million in 9MFY24 (FY24: PKR 10,353 million). The operating profit margin remained almost stable but the relaxation in policy rates attributed the rise in profitability by decreasing the finance cost and taxation. As a result, the net profit margin rose to 10.1% for the nine-month period ended March 2025, compared to 0.9% in the same period last year.

In light of the implementation of the Centralized Competitive Bidding Tariff Mechanism (CCBTM), the sustainability of NGC remains strong due to its regulated cost-plus model, which ensures stable revenues regardless of fluctuations in energy demand or market-based generation tariffs. Unlike power producers, NGC’s earnings are linked to NEPRA-approved investment plans and allowed returns, providing financial predictability. Moreover, NGC aligns its infrastructure development with the Indicative Generation Capacity Expansion Plan (IGCEP), which identifies future generation sites based on least-cost and merit-order principles. Accordingly, NGC plans and upgrades its transmission network in those target regions to ensure timely evacuation of power, reduce grid congestion, and support system reliability. As the sector transitions towards more competitive and renewable-based generation under CCBTM, NGC’s role as a neutral and efficient transmission provider becomes even more critical in maintaining grid stability, enabling fair access, and supporting long-term sectoral sustainability.

Efficient working capital management remains critical for NGC, with timely recovery of system usage charges from the Power Purchaser being essential. NGC's working capital cycle is primarily comprised of trade receivables and payables, as the Company does not hold inventory.

During 9MFY25, trade receivables declined significantly, bringing the receivable days down to 260 from 366 in FY24. Conversely, trade payables rose modestly to 69 days, up from 58 days in FY24. Consequently, net working capital days reduced to 191 at the end of 9MFY25, compared to 308 days in the previous fiscal year. The current ratio stood at 0.7x during the review period (FY24: 1.3x; FY23: 1.5x), reflecting a tighter short-term liquidity position but still considered adequate.

NGC’s coverage profile reflects the support of stable FCFOs and a decline in finance costs during the review period. FCFOs amounted to PKR 27,048 million in 9MFY25, slightly higher than PKR 26,012 million in 9MFY24. The finance cost decreased to PKR 10,517 million in 9MFY25 from PKR 14,977 million in 9MFY24, providing some relief to the Company’s financial burden. As a result, the interest coverage ratio remained stable at 3.9x in 9MFY25 (FY24: 3.9x), reflecting adequate capacity to meet debt servicing obligations from operational cash flows.

Being an infrastructure-based Company, NGC arranges funds from foreign and local financial institutions for the expansion of its network. The Company financed its projects mainly through Government re-lent loans and secured local financing. As of the end of 9MFY25, the Company's borrowings increased significantly to PKR 412 billion, up from PKR 341 billion in FY24 and PKR 274 billion in FY23. This rise in borrowings is primarily attributed to project financing secured through international funding sources, including the Asian Development Bank and the World Bank. The Company has no short-term borrowings. As a result, the Company's leverage as of March 2025 rose to 68.1%, compared to 63.6% in FY24 and 58.6% in FY23.