New power market introduced to ensure affordable energy

Pakistan has launched a competitive bidding process in the power sector with the introduction of an open power purchase and sale arrangement that had been delayed for decades.

The program begins with an auction mechanism for 800 MW of wheeling demand, marking a new phase of competitive electricity trading. Federal Minister for Energy Sardar Owais Leghari inaugurated a workshop on the competitive process framework, highlighting that reforms under the Competitive Trading Bilateral Contract Market (CTBCM) are vital to stabilizing electricity tariffs and ensuring affordable power for consumers.

He said the government is committed to introducing transparency and efficiency into the energy system. The minister stressed that the export sector will gain access to low-cost renewable energy sources under this model. At the same time, large industrial consumers will directly benefit from the new transparent market mechanism, reducing their dependency on high-cost electricity.

Owais Leghari also underlined that the government’s priority is consumer welfare, announcing 2025–26 as the customer service year. He described the shift toward a free power market as a historic milestone, designed to safeguard consumer interests while securing long-term energy stability for Pakistan.

Through these reforms, the government aims to attract investment, encourage renewable energy adoption, and create a competitive environment where prices are determined fairly through open bidding. Energy experts say the move could also ease pressure on the national grid and help industries lower their production costs, improving competitiveness in global markets. The minister reaffirmed that Pakistan’s energy future lies in market-driven mechanisms and sustainable reforms, which will ultimately protect consumers and support economic growth.