Federal Minister for Power Awais Leghari has announced a major shift in how the country buys and sells electricity. The announcement marks one of the most significant reforms to Pakistan’s energy sector in recent years. He said the government will no longer force consumers to purchase power at rates it sets. Instead, producers and consumers will now deal with each other directly.

Speaking to reporters in Islamabad, Leghari confirmed that the government formally exited the electricity buying process starting today. He said the state will no longer hold the right to buy power from producers or force them to sell it back. Therefore, buyers and sellers will now enter a new era of direct trading.

The minister explained that this electricity trading system will initially apply to large consumers. Industrial users who consume more than one megawatt will qualify first. Businesses and factories will then be able to purchase electricity from power plants on a competitive basis.

Leghari also revealed plans to auction 800 megawatts of electricity over the next five years. The first phase will offer 400 megawatts for auction. He said the process will run on principles of transparency and will eventually replace the old electricity market altogether.

Meanwhile, ordinary households are also expected to gain more freedom over time. Under the planned framework, everyday consumers will eventually choose their own electricity provider. This marks a significant departure from the current setup, where the government purchases power and distributes it at fixed rates.

Additionally, Leghari noted that Independent Power Producers have become a source of controversy in recent years. He added that the new system will introduce far greater competition into the sector. Still, questions remain about how quickly the transition will unfold for smaller consumers. Finally, officials say the shift toward this electricity trading system reflects a broader push to modernize Pakistan’s energy market.