ISLAMABAD: The Cabinet Committee on Energy on Wednesday approved the formation of an independent entity to reform Pakistan’s energy market by enabling consumers to purchase power from multiple suppliers, moving away from the current government-controlled system, where it is the sole buyer of electricity.
Pakistan’s energy sector has long struggled with financial strain due to circular debt, power theft and transmission losses, which have led to blackouts and high electricity costs.
The development of the independent market is viewed as a critical step toward addressing these issues by fostering competition, improving transparency and attracting foreign investment, ultimately easing the financial burden on the government and consumers alike.
The committee gave principal approval for the creation of the Independent System and Market Operator (ISMO) during a meeting chaired by Prime Minister Shehbaz Sharif, though the decision still requires endorsement by the federal cabinet for implementation.
“ISMO will gradually replace the government as the sole buyer of electricity and transition the energy market into a multi-player independent market,” the PM Office said in a statement issued after the meeting. “Consumers will be able to purchase electricity from suppliers other than just distribution companies under this system.”
“This initiative will help establish an efficient, transparent and competitive electricity market in Pakistan,” it added.
The creation of ISMO is also expected to reduce circular debt and stabilize electricity prices.
“The ISMO board will include experts from the energy sector to ensure smooth operations,” the statement informed.
Addressing the meeting, the prime minister emphasized the need to expedite efforts to reduce theft and losses in the electricity sector.
“We are taking priority-based measures to reform Pakistan’s energy sector,” Sharif added.

MULTAN: Joe Root became England’s highest-run scorer in tests as the tourists continued to score at a rapid pace on the third day of the first test against Pakistan on Wednesday.
Root surpassed Alastair Cook’s 12,472 runs with a straight-driven boundary before lunch to reach 72 at the break and guided England to a brisk 232-2 in 45 overs.
Root is now fifth on the all-time list of test run-scorers behind Sachin Tendulkar’s leading 15,921.
Ben Duckett recovered from a thumb injury which denied him opening England’s first innings on Tuesday afternoon and was unbeaten on 80 off 67 balls as the tourists smashed 136 runs in the first session after resuming on 96-1.
England still trails Pakistan by 324 runs after the home team was bowled out for 556 on a placid wicket of Multan Cricket Stadium.
England lost the wicket of Zak Crawley (78) inside the first half-hour when he chipped a catch of Shaheen Shah Afridi (1-44) after adding 14 runs to his overnight score of 64. Jamal pounced on the opportunity on second attempt at short mid-wicket as Crawley tried to whip the fast bowler on the on-side.
But England continued to exhibit its ‘Bazball’ approach against both pace and spin on a benign wicket. Duckett and Root decoded the mystery spin of Abrar Ahmed with lot of aggression on an unresponsive wicket for the bowlers as the leg-spinner has so far conceded 79 runs off his 12 overs.
In an England-dominated session, Pakistan also lost two of its reviews when it went for a shocking caught behind referral against Duckett soon after the left-hander had completed his half century, but the television replays suggested the bat was nowhere near the ball.
Captain Shan Masood then went for a second referral against Root off the same bowler, but the TV replays showed the ball was missing the leg stump.