Pakistan eyes first 200MW competitive power trade by June under CMOD regime

Pakistan is set to execute its first 200 megawatt electricity transaction by June under the newly operational Competitive Market Operations Date (CMOD) framework, Federal Minister for Power Sardar Awais Ahmed Khan Leghari said on Tuesday, calling it a long-overdue breakthrough in power sector reform.

The minister said auction-based electricity transactions are expected to proceed smoothly after April, once pending regulatory issues, including the determination of wheeling charges, are cleared. A summary on the matter has already been moved for the Prime Minister’s consideration.

Leghari was speaking at the CMOD declaration ceremony, where the framework was formally activated alongside Secretary Power Division Dr Muhammad Fakhre Alam Irfan, marking the start of competitive wholesale electricity trading in Pakistan.

He said the reform journey, first conceptualised in the early 1990s and practically initiated in 2016–17, had suffered from prolonged governance delays, noting that nearly two decades were lost between policy approval and serious implementation.

“When something is approved in 1992 and only implemented decades later, it reflects the structural weaknesses in governance,” he observed, adding that the delay had imposed heavy costs on the power sector.

The minister credited institutional coordination for pushing the reforms into execution, acknowledging contributions from the Power Division, regulators, and market entities, including ISMO Board Chairperson Ermeena Asad Malik, NGC Chairman Dr Fayaz, ISMO CEO Imtiaz Shah, and other senior officials.

He also thanked the Prime Minister and the Prime Minister’s Office for sustained political support, saying the reform process would not have reached the implementation stage without their ownership.

Leghari said completion of the first 200MW transaction would conclude nearly 20 to 25 years of debate and groundwork and described it as a critical step toward transitioning from a single-buyer model to a competitive electricity market.

He expressed optimism that the shift from a wholesale to a retail electricity market would move at a faster pace than past reforms, stressing the need to follow international best practices rather than relying on trial-and-error approaches.

At the conclusion of the ceremony, certificates were awarded to senior officials for their role in advancing the reform programme. Recipients included ISMO CEO Imtiaz Shah, Arshad Javed Minhas, Muhammad Zakria, Noman Rafiq, Omer Haroon Malik, Syed Shaheer Ali, Zeeshan Khan, and other officials involved in the rollout.