Pakistan, Türkiye sign power sector agreements to support market reforms and privatisation

Pakistan and Türkiye have signed three Memoranda of Understanding (MoUs) aimed at strengthening cooperation in power sector reforms, electricity market development and institutional capacity building, as Islamabad looks to modernise its energy sector and improve governance across the industry.

The agreements were concluded during high-level energy consultations in Istanbul and form part of broader efforts by both countries to expand collaboration in the power sector, according to a statement issued by Pakistan’s Ministry of Energy.

A key focus of the cooperation framework is the sharing of Turkish experience in electricity market reforms and post-privatisation sector management, areas that Pakistani authorities consider increasingly important as the country pursues structural changes in its power industry.

The MoUs were signed between Pakistan’s Independent System and Market Operator (ISMO) and Türkiye’s Energy Exchange Istanbul (EPIAS), ISMO and the Turkish Electricity Transmission Corporation (TEIAS), and the Power Planning and Monitoring Company (PPMC) and the Turkish Electricity Distribution Corporation (TEDAS).

Under the agreements, the two sides will cooperate on a range of technical and regulatory matters, including electricity market design, ancillary services regulations, transmission planning, power system operations, distribution network management, digitalisation initiatives and institutional strengthening.

The framework also covers cooperation on post-privatisation governance models, an area highlighted by Federal Minister for Energy Sardar Awais Ahmad Khan Leghari as particularly relevant for Pakistan’s ongoing reform agenda.

Leghari said Pakistan was keen to benefit from Türkiye’s experience in developing competitive electricity markets, modernising transmission and distribution systems, and integrating advanced technologies into power sector operations.

He noted that closer engagement between sector institutions would help transfer practical expertise, operational knowledge and international best practices that could support efforts to improve efficiency, strengthen governance and enhance service delivery across Pakistan’s power sector.

The Turkish side reaffirmed its commitment to long-term institutional cooperation and welcomed expanded engagement between the energy institutions of both countries.

Officials said the agreements would facilitate joint technical projects, training programmes, study visits and expert exchanges, creating a platform for deeper cooperation in support of Pakistan’s energy sector development.

The government described the signing of the MoUs as a significant outcome of the Pakistan-Türkiye energy dialogue and another step forward in the growing strategic partnership between the two countries.