ISLAMABAD:Pakistan has taken a decisive step toward establishing a long-delayed competitive electricity market, with the federal government unveiling a new auction framework for 800 MW wheeling demand under the Competitive Trading Bilateral Contract Market (CTBCM) to allow transparent buying and selling of power.
Speaking virtually at a CTBCM stakeholder workshop, Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari described the reforms as a “historic milestone” for the country’s power sector. He said the introduction of an auction process for 800 megawatts of wheeling demand marks the practical beginning of a market where industrial and commercial consumers can secure electricity at competitive prices.
“For decades, Pakistan’s electricity consumers have suffered due to inefficiencies and lack of competition in the power sector. Today, we are laying the foundation for stability in electricity prices and ensuring affordable energy for industries and households,” Leghari said.
The minister emphasized that CTBCM reforms guarantee Pakistan’s energy future by creating a transparent marketplace, breaking away from the traditional centralized purchasing model. He noted that the reforms will enable major industrial users to contract electricity directly from producers, particularly from renewable energy sources, ensuring cheaper and cleaner power supply.
“A transparent electricity market will directly benefit large industrial consumers, while also strengthening the competitiveness of our export sectors,” Leghari said.
the Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari underscored the government’s commitment to sectoral reforms. He noted that CTBCM will not only attract new investments but also help integrate renewable energy, empower industrial consumers through wheeling arrangements, and improve overall governance of the power sector.
He emphasized that the upcoming wheeling auctions will transparently allocate 800 MW of demand to market participants. This initiative will open the door for industrial and bulk consumers to directly procure power at competitive rates, helping reduce costs, improve reliability, and strengthen Pakistan’s industrial competitiveness.
Declaring the year 2025–26 as the “Year of Consumers,” the minister pledged that the reforms would be rolled out with a focus on service delivery and consumer protection. “This competitive trading market is not just a structural change; it is a promise to safeguard consumer interests and ensure they are served efficiently,” he said.
Pakistan’s move to operationalize the CTBCM has come after years of policy discussions and delays. The World Bank, Asian Development Bank, and other partners have long urged Islamabad to shift toward market-based electricity trading as a way to address chronic inefficiencies, reduce circular debt, and encourage private sector participation in generation.
It is pertinent to mention here that for a sector (power) burdened by rising costs and mounting debt, the reforms represent both a challenge and an opportunity. As Leghari put it, “This is a historic step toward consumer-centric energy reforms. It will redefine how electricity is traded, purchased, and consumed in Pakistan, creating a fairer, more efficient system for all.”
