Pakistan launches stakeholder consultations on power market reform

ISLAMABAD: Pakistan has kicked off stakeholder consultations on its long-awaited Competitive Trading Bilateral Contracts Market (CTBCM), an auction framework to allocate 800 megawatts of wheeling demand in a bid to liberalise the country’s power sector.

At a workshop organized by the Independent System and Market Operator (ISMO) on Friday, Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari said the reform would transform how electricity is bought and sold, giving industries the freedom to procure power directly from suppliers at competitive rates. He stressed that CTBCM was not an experiment but a carefully planned reform built on global best practices.

“The auction framework is the cornerstone of CTBCM implementation,” Leghari said in a virtual address. “It will not only reduce industrial costs but also strengthen Pakistan’s competitiveness in export markets by ensuring access to clean and cost-effective energy.”

ISMO officials outlined the registration process for market participants, contract obligations, and auction rules designed to ensure transparency and fair competition. Stakeholders engaged regulators, power producers and consumer representatives in Q&A sessions and a panel discussion on the challenges of market design, wheeling arrangements and renewable integration.

Leghari declared 2025–26 the “Year of Service to Consumers,” pledging that the government would back ISMO and NEPRA in operationalizing CTBCM. Without reform, he warned, inefficiencies would persist and consumers would continue to bear the cost of a stagnant system.

Officials said the consultation marked a turning point in Pakistan’s decades-delayed journey toward a transparent, modern electricity market. By creating choice for industrial buyers and opening space for new investment, CTBCM is positioned as a cornerstone reform to stabilize prices and ensure reliable energy for the economy.