Pakistan Launches Competitive Power Market Reform

Pakistan has formally launched stakeholder consultations for its Competitive Trading Bilateral Contracts Market (CTBCM), a major move to open up its power market. The Independent System and Market Operator (ISMO) organized a workshop with an invitation to regulators, power producers, and consumer representatives to discuss registration processes, auction rules, contract commitments, wheeling arrangements, and renewable integration.

Federal Power Division Minister Sardar Awais Ahmed Khan Leghari also made a strong statement regarding the reform, terming CTBCM as “not an experiment but a well-thought-out reform on the basis of global best practices.” He is of the opinion that the reform will empower industries to procure electricity directly from generators at competitive prices, reducing industrial costs and enhancing Pakistan’s competitive advantage in foreign markets.

Also highlighted was the government backing, Leghari vowed that 2025–26 will be the “Year of Service to Consumers,” and vowed to coordinate with NEPRA – National Electric Power Regulatory Authority and ISMO in order to implement CTBCM. The plan is set to dispatch 800 megawatts of wheeling demand using competitive auction methods. Players highlighted the fact that in case of no reform, inefficiencies will continue to simmer and consumers will keep shouldering the expenses of an inactive system.

Read more: NEPRA Cuts Power Tariff, Electricity Bills to Drop