Pakistan electricity reforms are set to bring a historic shift in the country’s power landscape. For the first time ever, the federal government is opening up the national electricity market, giving consumers the freedom to choose their own power suppliers — a step designed to boost competition and improve service quality across the nation.
Starting January 2026, all consumers using one megawatt or more will have the right to buy electricity in Pakistan from any licensed company of their choice. This long-awaited reform will finally break decades of regional monopolies that left most consumers with no real alternatives.
During a briefing to the National Assembly’s Standing Committee on Power, Power Division Secretary Dr. Fakhar Alam Irfan said the government is moving toward an open electricity market.He added that this shift will boost competition, attract private investment, and help deliver fair and affordable power rates for consumers.
Dr. Irfan also discussed one of the biggest challenges facing Pakistan’s electricity sector the persistent circular debt. Although the debt has not increased in the past three years, it still burdens the energy system.
In 2024, the power sector faced losses of Rs600 billion. The government has since cut them down to Rs397 billion and aims to reduce them further.
He explained that losses higher than NEPRA’s targets don’t affect consumers right away. However, they eventually add to the circular debt, which the federal budget later covers. Dr. Irfan advised keeping feeders with under 20% losses active to avoid hurting consumers and government revenue.
Committee member Shahida Rehmani expressed serious concerns about Karachi’s electricity issues, particularly the city’s dependency on K-Electric.
“Karachi is a mega city but relies on only one power company. Despite repeated promises, the problems of outages, infrastructure gaps, and billing errors continue,” she said.
Her remarks show Karachi residents’ frustration over years of load-shedding and overbilling, with no choice to change their provider. The upcoming Pakistan electricity reforms will change that, giving consumers long-awaited relief and real choice.
Officials briefed the committee on the rapid growth of solar energy in Pakistan. According to official reports, net-metering capacity has now exceeded 6,000 megawatts, while off-grid solar installations have reached 1,200 MW.
However, experts cautioned that the increasing reliance on solar power presents new challenges for the national grid.
Electricity from the grid carries about Rs14 in capacity charges and Rs9 in taxes per unit, making it costlier than solar power.
Even with these challenges, the government aims to build a load-shedding-free Pakistan electricity network through reforms focused on sustainability and affordability.
At first, the new electricity market will serve large consumers. Later, it will expand to smaller users, including households.
In simpler terms, Pakistanis will soon be able to choose their electricity providers just as they pick mobile networks today. This reform marks a new era in Pakistan’s electricity system, promising better competition, fair pricing, and more control for every consumer.
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