Federal Minister for Power Sardar Awais Ahmed Khan Leghari has described the latest step toward launching a competitive electricity market as a significant advancement in Pakistan’s power sector reform agenda.

In a statement issued Tuesday, he said the development marks a departure from the long-standing single-buyer structure to a more competitive, transparent, and market-driven electricity system, built on years of policy groundwork and institutional coordination.

According to the minister, the move represents a transition from planning to execution, setting the stage for a more efficient and accountable power market. The new system is designed to ensure transparency, provide equal access to the transmission network, and enable fair participation across the electricity supply chain.

Under a phased liberalization strategy, the government has approved shifting 800 megawatts of electricity demand to bilateral trading arrangements. These transactions will be conducted through automated and transparent competitive bidding mechanisms over time.

Leghari acknowledged the role of key institutions in achieving this milestone, including the Ministry of Energy (Power Division), National Electric Power Regulatory Authority, the Independent System and Market Operator, the Central Power Purchasing Agency-Guaranteed, the Private Power and Infrastructure Board, and power distribution companies.

He said the initiative highlights Pakistan’s resolve to strengthen governance, improve financial discipline, and attract investment in the energy sector.

The minister added that future efforts will focus on developing a dependable and modern electricity market that fosters innovation, accelerates clean energy integration, and supports sustainable economic growth.