Islamabad: In a significant move towards restructuring Pakistan’s power sector, Prime Minister Shehbaz Sharif has approved the establishment of an Independent System and Market Operator (ISMO) aimed at transforming electricity generation and purchasing processes. The decision was made during today’s Cabinet Committee on Energy meeting.

According to Ministry of Information and Broadcasting, the ISMO, which will be registered under the Companies Act 2017 with the Securities and Exchange Commission of Pakistan (SECP), is set to diminish the government’s role as the sole electricity buyer, thus opening the market to multiple independent players. This transition will allow consumers to purchase electricity directly from suppliers other than traditional distribution companies, fostering a competitive environment.

The new system is expected to encourage more efficient long-term planning for power generation and transmission, potentially reducing circular debt and lowering electricity rates within the sector. Additionally, the board of ISMO will include experts to ensure professional governance and effective oversight.

On the occasion, Prime Minister Sharif emphasized the urgency of power sector reforms, instructing relevant authorities to aggressively tackle electricity theft and losses. He also called for departmental actions against employees of distribution companies who are involved in malpractices and highlighted the necessity of integrating modern technology to streamline operations and prevent theft in the sector.