Pakistan shifts to competitive electricity market

March 25, 2026 (MLN): The National Electric Power Regulatory Authority (NEPRA) has set the Competitive Market Operations Date (CMOD), showed Pakistan’s shift from a single-buyer electricity model to a competitive, market-based framework.

As part of the transition, 800 MW of demand will be transferred to bilateral contracting through transparent, automated competitive auctions over the coming years, according to the press release.

Federal Minister for Power Division, Sardar Awais Ahmed Khan Leghari, described the CMOD declaration as a milestone in the country’s power sector reform, reflecting years of policy development, regulatory strengthening, and coordination among institutions.

He noted that the move represents a shift from reform planning to practical implementation.

The competitive electricity market framework aims to ensure transparency, open and non-discriminatory access to the transmission network, and enhanced accountability across the electricity value chain.

The transition is being carried out in a phased and responsible manner, with active participation from the Ministry of Energy (Power Division), NEPRA, ISMO, CPPA-G, PPIB, distribution companies (DISCOs), and other stakeholders.

The reform is intended to strengthen governance, improve financial sustainability, and build investor confidence in Pakistan’s power sector.

The government emphasized that future market operations will focus on delivering reliable and efficient electricity supply while supporting innovation, clean energy adoption, and long-term economic growth.

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