ISLAMABAD:
Federal Minister for Energy Sardar Awais Ahmed Khan Leghari on Tuesday said that the first electricity transaction of 200 megawatts (MW) under the newly launched Competitive Market Operations Date (CMOD) regime is expected to be completed by June this year, marking a major milestone in Pakistan’s transition towards a competitive energy market.
Addressing the CMOD declaration ceremony, the minister said the reform process, originally envisaged decades ago and initiated in 2016-17 in its practical form, had finally entered the implementation phase after years of deliberations and institutional groundwork.
Reflecting on the delay in implementation despite the conceptual approval of competitive market reforms in the early 1990s, the minister termed it as a delay in governance that cost the country valuable time.
“When you conceptualize something and approve it in 1992, but only begin to seriously implement it almost two decades later, that reflects the challenges in our governance framework,” he noted.
The minister emphasized that the reform was a collaborative institutional effort and appreciated the role of senior officials.
Highlighting the current challenges, the minister noted that certain regulatory and procedural matters, including the determination of transportation charges, were still in process. He said a summary had been submitted for the Prime Minister’s consideration and expressed optimism that after April, transactions related to the auction would proceed smoothly.
“We hope that the first 200MW transaction will be completed by June this year. It has required between 20 and 25 years of discussions and efforts. Achieving this will be a big step forward,” he commented.
Leghari expressed hope that the transition from wholesale to retail electricity market will be done at a much faster pace than previous reforms. He highlighted the need to adopt global best practices rather than relying solely on internal learning through trial and error.
