Pakistan to unplug power monopoly, eyes competitive market

ISLAMABAD: Pakistan will soon open a competitive electricity market, ending the government’s monopoly as sole power purchaser, Federal Minister for Power Sardar Awais Ahmad Khan Leghari said on Thursday during a high-level meeting with a World Bank delegation led by Managing Director of Operations, Anna Bjerde.

In a related development, World Bank Country Director Najy Benhassine commended the pace of reforms and revealed that an additional $55 million in financing was being processed in recognition of power sector’s progress.

Leghari said the preparatory work for the market transition is nearing completion and highlighted the establishment of an Independent System and Market Operator (ISMO) to oversee market operations. He said seasoned professionals are being inducted to ensure the system’s integrity and efficiency. Leghari underscored key reforms, including improved revenue recovery and efforts to ensure subsidies only reach the most deserving consumers. He sought the World Bank’s support for targeted subsidy mechanisms — an idea Bjerde endorsed, reaffirming the Bank’s commitment to helping modernize Pakistan’s power sector.

With a surplus of around 7,000 megawatts, Leghari proposed supplying electricity to industries at marginal rates, claiming it would be the region’s most affordable industrial power. He urged development partners to back this strategy which, he said, could spark industrial growth. This winter, we already provided low-cost power without subsidies, he said.

The aim now is to expand this model year-round, Leghari said, adding that the sector is moving toward full digitalization—from feeders to transformers—with the World Bank’s support seen as pivotal.

The minister also briefed the delegation on the privatization of three power distribution companies, expected to conclude by year-end, and emphasized restructuring reforms including international-standard procurement systems, project fast-tracking, and the strategic role of the newly established Power Planning and Monitoring Company.