ISLAMABAD – The Government of Pakistan has reiterated its full commitment to transforming the country’s electricity sector through the implementation of a competitive power market, highlighting the crucial role of the Competitive Trading Bilateral Contract Market (CTBCM) and the Auction Framework as central pillars of the reform.
The announcement came during a high-level stakeholder workshop organized by the Independent System and Market Operator (ISMO), bringing together policymakers, regulators, industry leaders, investors, development partners, consumer groups, and members of the media.
Participants acknowledged ISMO’s leadership and strategic direction since its inception. With a mandate to operate the power system, administer the competitive market, and lead long-term energy planning, ISMO is at the forefront of Pakistan’s energy transition.
The government’s vision was clearly articulated: to build a modern, transparent, and competitive electricity market that delivers affordable, reliable, and sustainable energy to all Pakistanis. Officials emphasized that CTBCM is not a trial, but a long-awaited reform moving steadily into practical implementation.
A major highlight of the reform is the Auction Framework, which outlines a transparent process for allocating 800 MW of wheeling demand through competitive bidding. This structure aims to:
Build trust in the market
Encourage new market entrants
Provide industrial consumers with direct access to competitively priced electricity
The framework is particularly advantageous for bulk power consumers, such as export-oriented industries, allowing them to source greener and more affordable energy.
Speakers noted the wide-reaching impact of the reform. By lowering energy costs and supporting renewable integration, CTBCM can stimulate economic growth, job creation, and environmental sustainability. These benefits, they said, will extend far beyond the energy sector, influencing the broader economy and improving the lives of citizens.
The workshop was framed as a genuine platform for consultation and collaboration, rather than a symbolic event. The government and ISMO encouraged active participation from all market actors—including consumers, generators, suppliers, and investors—to ensure the reform process reflects diverse perspectives and needs.
Acknowledging the scale and complexity of the reforms, officials stressed the need for careful coordination, regulation, and planning. However, they warned that the costs of inaction—persistent inefficiencies, discouraged investment, and rising consumer burdens—far outweigh the challenges of change.
The Government reaffirmed its strong support for ISMO and NEPRA in operationalizing the CTBCM and Auction Framework. Clear political will and institutional cooperation were pledged to ensure the reform’s success.
“This reform is not optional, it is essential. Together, we can build a power sector capable of fueling Pakistan’s growth for decades to come,” it was noted.
