By SKM
December 24, 2025
ISLAMABAD: The Cabinet Committee on Energy (CCOE) has approved a landmark decision aimed at strengthening long-term national energy planning and laying the groundwork for a competitive electricity market in Pakistan. The resolution, issued Wednesday, seeks to unify planning efforts across federal and provincial entities, which had previously operated independently.
Under the new framework, collaborative and cohesive planning will be implemented to assess the country’s energy requirements, consumption patterns, and production capacities. To facilitate this, a dedicated secretariat will be established within the Power Division’s Power Planning & Monitoring Company (PPMC), consolidating all planning activities under a single entity and location. Officials say this approach will provide policy-formulating institutions with robust, integrated support and enhance the country’s capacity to plan comprehensively across all energy sources, including a focus on green energy initiatives.
During the Cabinet Committee session, the Power Division was formally entrusted with this mandate, signaling a significant strengthening of its role in national energy planning. Authorities noted that this unified approach will allow for more effective coordination among federal and provincial stakeholders and streamline the implementation of energy policies nationwide.
In a separate but related move, the Cabinet’s Energy Committee also issued a historic endorsement on electricity wheeling, aimed at facilitating the development of a competitive energy market. The decision authorizes the Competitive Trading Bilateral Contract Market (CTBCM) framework for electricity auctions and outlines participant engagement, competitive bidding, and other related processes.
As part of this initiative, the government has formally disengaged from direct electricity procurement. No further electricity procurement agreements will be signed, and a competitive bidding process for 800 megawatts of electricity will now be initiated. Oversight of the auction process will be handled by the Independent System and Market Operator (ISMO), a body under the Power Division, ensuring transparency and maximum stakeholder participation.
Officials describe the dual measures—centralized energy planning and the establishment of a competitive electricity market—as pivotal for advancing Pakistan’s energy security, promoting efficiency, and supporting the government’s commitment to green energy and sustainable development. Ends
