Islamabad: In a significant development for Pakistan’s energy sector, the government has initiated a transition from a single-buyer model to a competitive electricity market. This shift was revealed by Minister for Power Sardar Awais Ahmad Khan Leghari in a video message, marking a pivotal change aimed at enhancing market dynamics and consumer choice.

According to Radio Pakistan, the Power Division has called for proposals for the country’s first-ever electricity wheeling auction, a move that signals the onset of the Competitive Trading Bilateral Contract Market mechanism. This new system allows businesses and industrial consumers to procure electricity directly from power producers on a competitive basis. The division plans to auction 800 megawatts of electricity over the next five years, with 400 megawatts available for competitive procurement in the initial phase.

Minister Leghari emphasized that the government, traditionally responsible for purchasing and supplying electricity under a centralized system, will relinquish these roles, enabling direct transactions between electricity generators and consumers. The reformed system, initially targeting industrial and large consumers with demands exceeding one megawatt, promises a transparent and competitive trading environment.

The transition is expected to eventually broaden into a more extensive power market, offering consumers increased options in electricity purchasing. Minister Leghari expressed optimism that competitive electricity pricing would bolster the international competitiveness of Pakistani industries and enhance their export capabilities.