Pakistan to launch competitive electricity market within two months, says power minister

Federal Minister for Power, Sardar Awais Ahmad Khan Leghari, announced that the Competitive Trading Bilateral Contract Market (CTBCM) will enter its final implementation phase within the next two months. This statement was made during a meeting with a World Bank delegation, led by Ousmane Dione, the Regional Vice President for the Middle East, North Africa, Afghanistan, and Pakistan, BR reported. 

The Power Division had previously informed nearly a dozen development partners that CTBCM is expected to begin commercial operations by the end of September 2025. This policy will enable Bulk Power Consumers (BPCs) with a demand of 1MW or more to procure electricity through independent bilateral contracts with competitive suppliers.

According to the Power Division, the development of viable open access charges and a transparent mechanism for allocating wheeling quantum are in their final stages. The operationalization of the Independent System and Market Operator (ISMO) will be critical to CTBCM’s success.

Minister Leghari explained that CTBCM will facilitate free electricity trade within the market, with the government’s role limited to regulation. The transition to this model will be gradual, supported by a comprehensive strategy to maintain system stability.

During the meeting, Leghari briefed the World Bank delegation on various energy reforms, including net metering, privatization efforts, regulatory improvements, and investment opportunities. He emphasized that Pakistan is committed to encouraging private sector participation and enhancing transparency, inviting international investors to engage in these reforms.

Ousmane Dione welcomed the energy reforms and reaffirmed the World Bank’s continued support for Pakistan, highlighting the importance of a sustainable and investment-friendly energy system.