Competitive electricity market reforms took center stage in Karachi as industry leaders, government officials, and energy experts urged an end to Pakistan’s monopolistic single-buyer power model. Advocates stressed that adopting a transparent, multi-stakeholder system would boost efficiency, cut costs, and open direct trading between producers and consumers.
Sindh Government’s Support
Sindh Energy Minister Syed Nasir Shah assured the business community of the government’s backing. He said the province had already established the Sindh Electric Power Regulatory Authority (SEPRA) to handle electricity matters locally. The Sindh government, he added, plans to address industry concerns at both provincial and federal levels.
Conference Highlights
The Multi-Stakeholder Conference on Competitive Electricity Market in Pakistan was organized by Renewables First and the Pakistan Business Forum (PBF) with support from the Private Power & Infrastructure Board (PPIB). The event aimed to advance the Competitive Trading Bilateral Contracts Market (CTBCM) — a long-delayed reform program approved by the Economic Coordination Committee and NEPRA but yet to be fully implemented.
PBF Chief Organizer Ahmad Jawad, Renewables First CEO Zeeshan Ashfaq, and former NEPRA chairman Tauseef H. Farooqi opened the conference with calls to fast-track CTBCM. They underlined its potential to make electricity more affordable while stimulating economic growth.
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Breaking the Monopoly
Salman Amin of the Competition Commission of Pakistan said Pakistan’s power sector remains trapped in a monopolistic setup. CTBCM, he stressed, could finally drive competition and efficiency. Abdul Rehman, Associate at Renewables First, explained the program’s history and revealed that the government planned to launch it with 800MW of capacity, with possible expansion later.
First Panel: Transparency and Private Sector Role
The first panel featured former PEPCO MD Tahir Basharat Cheema, Thar Energy Ltd CEO Amjad Ali Raja, and a representative from the Independent System and Market Operator (ISMO). Speakers agreed that opening the market for bilateral electricity trade is essential for fair competition.
Cheema argued that poor institutional decisions had crippled the sector, while Farooqi noted that government control had discouraged investment — citing the failure to attract bids for a 600MW solar plant, in contrast to KE’s successful 640MW auction. They urged transparency, public consultation, and greater private sector involvement.
Second Panel: Industry Warnings
The second panel brought together Korangi Association of Trade and Industry President Junaid Naqi, Reon CEO Mujtaba Khan, FPCCI representative Rehan Javed, and PBF’s Saleha Hassan. Mujtaba warned that without urgent reforms, the national grid risked collapse. He identified underperforming distribution companies as the sector’s weakest link, pushing many consumers to go off-grid.
Ramsha Panhwar, researcher and energy specialist at Renewables First, stressed the need for clean, affordable, and reliable electricity for industries. She criticized the current wheeling cost structure, where more than 80% of charges stem from stranded costs and cross-subsidies. She recommended a phased, transparent recovery plan that eases burdens on consumers while attracting industrial participation.
Larger Market Demand
Industrialists at the conference rejected the proposed 800MW limit for the competitive market, calling it too small to meet demand. Mujtaba Haider said the industry would gladly participate if given fair wheeling rates and facilitation measures. He emphasized that a larger market size could attract more investors and create stronger competition.
Way Forward
Participants urged the government to commit to a clear and consistent long-term plan for stranded asset recovery. They also demanded that reforms be implemented in a manner that encourages market growth under CTBCM, promotes transparency, and removes barriers to private sector engagement.
PBF Karachi President Malik Khuda Bakash closed the event by commending the collaborative efforts of all stakeholders. He noted that the conference had provided a unified voice for reform and a roadmap to break Pakistan’s long-standing power sector monopoly.
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