Pakistan's First 200MW Power Transaction Under CMOD Expected by June
Federal Minister for Power Sardar Awais Ahmed Khan Leghari stated on Tuesday that the initial 200 megawatts (MW) electricity transaction under the newly launched Competitive Market Operations Date (CMOD) regime is anticipated to be finalized by June this year. This development represents a significant milestone in Pakistan's ongoing transition toward a competitive power market.
Reform Journey Enters Implementation Phase
Addressing the CMOD declaration ceremony, Minister Leghari highlighted that the reform journey, originally conceived decades ago and initiated in a practical form during 2016-17, has now entered the implementation stage after years of extensive deliberations and institutional groundwork. He reflected on the delays in implementation, noting that competitive market reforms were conceptually approved as early as 1992 but only saw serious action nearly two decades later.
"When you conceptualize something and approve it in 1992 but only begin serious implementation nearly two decades later, it reflects the challenges in our governance framework," Leghari observed. He described this lag as a governance issue that cost the country valuable time in advancing its power sector.
Collaborative Efforts and Ongoing Challenges
The minister emphasized that the reform process is a collaborative institutional effort and acknowledged the critical role played by senior officials in driving progress. However, he also pointed out ongoing challenges, including certain procedural and regulatory matters that are still under process.
Key issues such as the determination of wheeling charges remain unresolved. Leghari mentioned that a summary has been moved for the Prime Minister's consideration, expressing optimism that auction-related transactions will proceed smoothly following April.
"We are expecting that by June this year, the first 200MW transaction will be completed. It has taken 20-25 years of discussions and efforts. Achieving this will be a major step forward," he remarked.
Future Outlook and Global Best Practices
Looking ahead, Minister Leghari expressed hope that the transition from a wholesale to a retail electricity market will occur at a much faster pace compared to past reforms. He stressed the importance of adopting global best practices rather than relying solely on domestic trial-and-error learning to ensure efficiency and sustainability in the power sector.
This move is expected to enhance market competitiveness, potentially leading to better pricing and service delivery for consumers across Pakistan.
