Pakistan to open power market in 2 months, ending state monopoly

ISLAMABAD: Pakistan will roll out its first-ever competitive electricity market within two months, ending decades of government-driven power procurement and opening the sector to private trading.

Energy Minister Sardar Awais Ahmad Khan Leghari on Thursday told a visiting World Bank delegation, led by Regional Vice President for the Middle East, North Africa, Afghanistan, and Pakistan Ousmane Dione that the Competitive Trading Bilateral Contract Market (CTBCM) will allow independent power producers and bulk consumers to trade electricity directly, while the government’s role will be limited to regulation. “This transition is backed by wheeling charges and new mechanisms that will ensure transparent, market-based power trading,” he said, stressing it will be gradual to maintain system stability.

The minister also briefed the delegation on broader energy reforms, including net metering, privatization, regulatory strengthening and investment opportunities, emphasizing a clear policy shift toward private sector growth and transparency.

Dione praised Pakistan’s energy reforms, calling reliable and sustainable energy “a foundation of economic development,” and pledged continued World Bank support for building an investor-friendly energy system.