On Wednesday, the Cabinet Committee on Energy has approved the creation of an independent multiplayer market for electricity generation and purchase, aiming to foster competition and reduce the government’s role as the sole electricity purchaser.

During a meeting chaired by Prime Minister Shehbaz Sharif, the committee endorsed the formation of an Independent System and Market Operator (ISMO).

This proposal will be forwarded to the federal cabinet for approval and registered with the Securities and Exchange Commission of Pakistan under the Companies Act 2017, which was stated in a press release from the Prime Minister’s Office.

The ISMO is designed to transition the electricity market into a transparent and competitive environment, allowing consumers to buy power from suppliers other than traditional distribution companies. It will focus on long-term planning to generate low-cost electricity and improve transmission, aiming to lower power prices and address circular debt issues.

The ISMO Board will consist of experts from the power sector. During the meeting, participants were updated on the ongoing circular debt challenges.

Prime Minister Shehbaz emphasized the need for urgent reforms in the power sector, calling for swift measures to combat power theft and losses. He also instructed officials to implement modern technologies to enhance reform efforts and reduce theft.

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Federal ministers Muhammad Aurangzeb, Ahsan Iqbal, Ahad Khan Cheema, Sardar Awais Ahmed Leghari, and Dr Musaddik Malik, Minister of State Ali Pervaiz Malik and other members of the committee attended the meeting.