Federal Minister for Energy Awais Ahmad Khan Leghari has announced a major shift in Pakistan’s electricity procurement system.

The government plans to step back from directly purchasing electricity for consumers.

Under the new system, eligible consumers will buy power directly from electricity producers.

Leghari made the announcement while speaking to the media in Islamabad.

He said affordable electricity remains a key government priority.

The minister said the government will auction 800 megawatts of electricity over the next five years.

The first phase will offer 400MW to eligible consumers.

Industries to Buy Electricity Directly

The new system will initially target industrial and large electricity consumers.

Businesses will have the option to purchase power directly from generating companies.

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Leghari said consumers using more than one megawatt will qualify during the first phase.

The system will allow producers and consumers to negotiate power supplies through a competitive market.

The minister said transparency would guide the new electricity trading mechanism.

Government to Step Back From Power Procurement

Pakistan currently purchases electricity through the existing power sector structure.

The government then supplies that electricity to consumers under regulated arrangements.

Leghari said questions had remained over the terms governing power procurement.

The new model will change that structure.

The government will no longer rely on the previous arrangement to purchase and resell electricity.

Instead, producers and consumers will conduct power transactions directly.

The change aims to introduce greater competition into the electricity market.

Electricity Market to Expand Gradually

Leghari said Pakistan will gradually develop a broader electricity market.

The system could eventually give ordinary consumers more choice over their electricity suppliers.

For now, the government will focus on industrial and large consumers.

Officials expect greater competition to influence electricity prices and supply arrangements.

The new framework could also create more options for businesses seeking reliable and affordable power.

Cheaper Power Could Support Exports

Leghari said competitive electricity prices could strengthen Pakistani industries.

Lower power costs could help manufacturers compete in international markets.

He also linked affordable electricity with stronger export performance.

The government expects the new trading model to support industrial activity and improve competitiveness.

The shift marks a move towards a more market-based electricity system in Pakistan.