Pakistan has launched stakeholder consultations on the Competitive Trading Bilateral Contracts Market (CTBCM), a landmark reform designed to liberalise the country’s power sector. The initiative, facilitated by the Independent System and Market Operator (ISMO), will introduce competitive wheeling auctions to allocate 800 megawatts of demand to industrial and bulk consumers.
Competitive Electricity Auctions Ahead
At a workshop in Islamabad, Federal Minister for Power Division Awais Ahmad Khan Leghari said the auction framework forms the backbone of CTBCM. He explained that the new system would allow industries to directly procure power from suppliers at competitive rates, reducing production costs, enhancing reliability, and boosting Pakistan’s export competitiveness.
Leghari stressed that CTBCM is not experimental but the result of years of planning aligned with global best practices. “The auction framework is the cornerstone of CTBCM implementation. It will not only reduce industrial costs but also ensure access to clean, affordable, and reliable energy,” he said.
Industry Participation and Rules
ISMO officials briefed participants on the registration process for market players, contract obligations, capacity requirements, and auction rules designed to ensure fair competition. They also explained wheeling arrangements, which enable private producers to sell electricity to consumers across the grid.
Stakeholder Dialogue and Challenges
The consultation featured Q&A sessions and a panel discussion titled “CTBCM – Opportunities and Challenges”. Regulators, power producers, and consumer representatives exchanged views on renewable integration, technological advances, bulk power demand, and transparency in the market.
Toward a Modern Power Market
Declaring 2025–26 as the “Year of Service to Consumers,” Leghari pledged that the government would support ISMO and NEPRA in fully operationalising the CTBCM. He noted that without reforms, inefficiencies would continue to burden consumers.
Officials highlighted that CTBCM marks a turning point in Pakistan’s long-delayed push for electricity market liberalisation. By opening choice for industrial buyers and encouraging new investment, the reform lays the foundation for a transparent, competitive, and sustainable energy sector.
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