The Federal Minister for Power Awais Leghari is reported to have informed the National Assembly this week that the government would stop purchasing electricity after March this year as creation of an ’ independent electricity market’ has been approved.

He also said that the establishment of an independent electricity market is believed to be one of the significant milestones in the country’s transition towards a more competitive and efficient energy market.

It is anticipated to have long-term positive effects on consumers and the economy as a whole, given the country’s rising electricity demand and difficulties in controlling costs, according to the minister.

The statement of the minister is a welcome step as an independent electricity market is the right way forward towards a mature electricity market, which strikes a delicate balance between the interests of the supplier and consumer. All leading economies, including India’s, are reaping the benefits of it.

However, a question that needs a plausible answer is: Is Pakistan’s prevailing electricity regime mature and robust enough to embark on something as complex and ambitious as an independent electricity market?

The statement of the minister is silent to........

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