Open-market access will first be extended to consumers using up to 1MW of electricity, says Power Division secretary
KARACHI: Karachi and other parts of the country will be able to choose their own electricity suppliers from January 2026 under the government’s plan to introduce a competitive power market, The News reported on Wednesday.
The National Assembly’s Standing Committee on Power, chaired by MNA Muhammad Idrees, met to discuss the “Multi-Vendor Electricity Distribution Bill, 2025,” tabled by MNA Shahida Rehmani. The committee, however, decided to defer consideration of the bill until February 2026 for further review.
During the meeting, Rehmani cited Karachi’s longstanding electricity issues, pointing to inefficiency and mounting losses under K-Electric’s management.
Power Division Secretary Dr Fakhr Alam Irfan said that beginning in January 2026, consumers in Karachi and across Pakistan will have the option to purchase electricity from any power company.
He added that around 200 megawatts (MW) of electricity will be made available for bulk purchase in the initial phase. The open-market access will first be extended to consumers using up to one megawatt of power, before expanding to other categories.
The committee was briefed that Pakistan’s off-grid and net-metered solar capacity has surged to 18,000MW, creating challenges for grid stability as the government monitors the integration of renewable energy with the national grid.
Fakhr Alam noted that electricity generated through the grid and net-metering cannot be directly compared, with grid power carrying additional costs of Rs14 for capacity and Rs9 for taxes, while net-metered electricity is cheaper.
Net-metering capacity has now reached 6,000 megawatts, and off-grid solar installations are estimated at 12,000 MW, based on satellite imagery. Officials warned that the growing load from these systems could threaten the stability of the national grid if not carefully managed.
