ISLAMABAD:
Federal Minister for Power Sardar Awais Ahmed Khan Leghari on Tuesday said the first power transaction of 200 megawatts (MW) under the new Competitive Market Operations Date (CMOD) regime is expected to be completed by June this year, marking a significant milestone in Pakistan’s transition to a competitive electricity market.
Addressing the CMOD declaration ceremony, the minister said the reform process, initially envisaged decades ago and launched in 2016-17 in its practical form, had finally entered the implementation phase after years of deliberations and institutional work.
Reflecting on the delay in implementation despite the conceptual approval of competitive market reforms in the early 1990s, the minister termed it a governance delay that cost the country valuable time.
“When you conceptualize something and approve it in 1992, but only begin serious implementation almost two decades later, it reflects the challenges of our governance framework,” he observed.
The minister stressed that the reform was a collaborative institutional effort and appreciated the role of senior civil servants.
Highlighting ongoing challenges, the minister noted that some procedural and regulatory issues, including the determination of transportation charges, were still ongoing. He said a summary had been submitted for the Prime Minister’s consideration and expressed optimism that auction-related transactions would go smoothly after April.
“We expect that by June this year, the first transaction of 200 MW will be finalized. This took 20-25 years of discussions and efforts. Achieving this will be a big step forward,” he remarked.
Leghari expressed hope that the transition from wholesale to retail electricity market would continue at a much faster pace than previous reforms. He stressed the need to adopt global best practices rather than relying solely on trial and error learning at the national level.
