Pakistan aims to conclude its first 200-megawatt (MW) electricity transaction through a competitive wheeling auction by June, Federal Minister for Power Sardar Awais Ahmed Khan Leghari said Wednesday. The auction is being launched under the newly operational Competitive Market Operations Date (CMOD) regime, a milestone for market-based electricity trading in the country.
The federal government has forwarded a summary for approval to the prime minister to initiate the auction, which will be managed by the Independent System and Market Operator (ISMO). The first phase will determine buyers for up to 200MW, with plans to auction a total of 800MW through wheeling during 2026.
Under the wheeling framework, large electricity consumers can bypass the traditional single-buyer model and enter into direct agreements with power plants. Consumers will pay only network usage charges to government-owned transmission and distribution companies for use of the grid infrastructure.
Leghari described the launch of CMOD as a “major milestone” for Pakistan’s power sector, noting that competitive market reforms had been conceptualized in the early 1990s but delayed for decades. Regulatory matters, including the final determination of wheeling charges, are still under review, but the minister expressed confidence that auction-based transactions would proceed after April, culminating in the first 200MW deal by June.
Officials said the shift toward wheeling and competitive bilateral contracts is expected to transform Pakistan’s electricity market from a centralized purchasing model to a more open, market-driven structure, improving efficiency, transparency, and cost optimization in the sector.