The Cabinet Committee on Energy (CCoE) has given the green light for the establishment of an Independent System and Market Operator (ISMO) to oversee electricity production and purchasing in Pakistan. This significant development, announced by the Prime Minister’s Office on Wednesday, aims to transform the existing electricity market into a competitive, multi-player system.

The federal cabinet is expected to formally approve the ISMO, which will be registered under the Companies Act 2017 with the Securities and Exchange Commission of Pakistan (SECP). This move marks a shift away from the government’s current role as the sole buyer of electricity, paving the way for consumers to purchase electricity from a variety of suppliers in addition to the traditional distribution companies (DISCOs).

The introduction of ISMO is anticipated to facilitate long-term planning for cost-effective power generation and transmission, potentially leading to reduced electricity rates and alleviating the circular debt issue.

In conjunction with these reforms, the Prime Minister has called for swift implementation of changes within the electricity sector. This includes urgent measures to combat electricity theft and losses, as well as departmental action against DISCO employees found to be involved in such activities. The Prime Minister also emphasized the importance of leveraging modern technology to prevent electricity theft and improve efficiency.