Federal Energy Minister Sardar Awais Ahmad Khan Leghari has announced that Pakistan will implement its first-ever Free Energy Market Policy within the next two months. Once in effect, the policy will permanently end government-led electricity purchasing, shifting the power sector toward open-market competition. The announcement was made during a high-level meeting with a World Bank delegation led by Regional Vice President for MENA, Afghanistan, and Pakistan, Ousmane Dione.
Under the Competitive Trading Bilateral Contract Market (CTBCM) model, electricity will be freely traded between producers and consumers. The model introduces mechanisms such as wheeling charges, while the government’s role will be limited to regulation only. Leghari emphasized that this transition will happen gradually through a carefully crafted roadmap to ensure system stability. He added that Pakistan’s energy strategy now clearly favors private sector participation and transparency.
The minister briefed the World Bank team on recent reforms in net metering, privatization, regulatory improvements, and investment incentives. He said the government is committed to building a transparent, investor-friendly energy sector and welcomed international investment as a vital partner in this shift. He also shared a comprehensive booklet detailing Pakistan’s energy reforms with the delegation.
Ousmane Dione appreciated Pakistan’s reform efforts in the power sector. He highlighted that energy is essential for national development and assured continued support from the World Bank. Dione reaffirmed the bank’s commitment to helping Pakistan build a sustainable, reliable, and investor-ready energy system.
The upcoming policy is expected to redefine Pakistan’s electricity landscape by promoting market competition and reducing the state’s financial burden. With World Bank backing and a private-sector-focused strategy, the country aims to attract global investment and foster long-term energy security.