Leghari vows CTBCM launch with auction framework

Energy Minister Power Division Owais Leghari told a stakeholder workshop in Islamabad that Pakistan will soon launch the Competitive Trading Bilateral Contract Market with an auction framework.

Federal Minister for Energy (Power Division) Owais Leghari on Friday reaffirmed the government’s commitment to operationalizing the Competitive Trading Bilateral Contract Market (CTBCM).

He called it an essential reform to modernize Pakistan’s electricity sector. Speaking at a stakeholder workshop, the minister stressed that CTBCM is not an experiment but a carefully planned market reform that has been years in the making.PSO stakes in power plants

The Independent System and Market Operator (ISMO) organized the workshop to entrust with managing Pakistan’s power system, administering the competitive electricity market, and leading long-term sector planning.

At the heart of the discussions was the Auction Framework to allocate 800 megawatts of wheeling demand through competitive bidding.

Leghari explained that auctions will provide a clear and transparent mechanism for power procurement. He said that it would enable industrial bulk consumers to directly contract electricity from suppliers of their choice. He said this shift would not only reduce costs for industries but also give consumers greater control and foster market confidence.

The minister invited input on auction guidelines and processes from stakeholders, including consumer groups, investors, and power producers. “This framework is not just about rules—it is about building trust, encouraging new entrants, and giving consumers real choice,” he said adding that the government is committed to ensuring that stakeholder feedback shapes the final design of the auctions.

In particular, the auction framework is likely to facilitate integration of renewable energy sources into the grid and lower energy costs for industries. It also aimed at creating opportunities for export-oriented sectors to access affordable, green power.

“This reform is not just about the power sector—it is about the economy, the environment, and the wellbeing of our people,” the minister said.

Leghari praised ISMO for convening the forum and highlighted its central role in ensuring the transition to a transparent and competitive energy market.

Minister outlined the government’s vision and said the goal is to build a modern electricity market to guarantee affordable, reliable, and sustainable energy for all citizens.

“This reform is not optional, it is essential,” Leghari said, adding that CTBCM will bring greater transparency, efficiency, and competitiveness to the power sector. He emphasized that the reform would soon become a practical reality, with operational mechanisms which already being developed.

Leghari noted that CTBCM arrives at a pivotal moment as Pakistan seeks to strengthen its economy, enhance industrial competitiveness, and create jobs. He argued that reliable and competitively priced electricity is one of the most critical enablers of economic growth.

He acknowledged the challenges inherent in reforms of this scale, Leghari pointed out that market design, technical regulations, and institutional coordination would demand careful planning.

However, he also cautioned that the cost of inaction would be far greater. Without reform, he said that inefficiencies would persist, investor interest would decline, and consumers would remain burdened with a system that no longer meets their needs.

The minister stressed the importance of inclusive participation in the reform process. He said that the workshop was not a ceremonial event but a genuine platform for consultation and dialogue.

“We are not imposing a top-down reform. We are building a collaborative framework where every voice matters,” Leghari said, assuring participants of the government’s commitment to inclusivity.

In his closing remarks, the minister pledged full political and institutional support for ISMO and the National Electric Power Regulatory Authority (NEPRA) in their mission to implement CTBCM.

He also said the government would provide the backing necessary to make the transition successful. Calling on stakeholders to engage actively in consultations, he reiterated that the reforms aim to deliver a power sector that is efficient, transparent, competitive, and capable of fueling Pakistan’s growth for decades.

The introduction of CTBCM represents a landmark shift from a centrally controlled electricity system to a market-driven framework.