KARACHI/ISLAMABAD, September 4, 2025: Experts, industry leaders, and policymakers on Thursday convened at the policy dialogue on power wheeling reforms and smart green grids (SGGs), emphasizing that rationalized wheeling frameworks and grid modernization are critical for industrial competitiveness, renewable integration, and compliance with emerging trade measures such as the EU Carbon Border Adjustment Mechanism (CBAM).
The Policy Dialogue titled “Power Wheeling Reforms and Green Grids for Industrial Competitiveness and Growth in Pakistan”, jointly hosted by the Sustainable Development Policy Institute (SDPI) and the Overseas Investors Chamber of Commerce and Industry (OICCI), examined how the Competitive Trading Bilateral Contracts Market (CTBCM) and its wheeling regulations could transform Pakistan’s electricity sector from a single-buyer monopoly to a multi-buyer, competitive market.
Mr. Abdul Aleem, Secretary General of OICCI, emphasized that Pakistan’s power sector is at a turning point. “For industries to remain competitive in global markets, access to reliable,
clean, and cost-effective power is critical,” he said. He stressed that well-designed wheeling reforms and green grids could help Pakistan meet emerging international benchmarks such as the EU’s CBAM, which will impact export-dependent industries especially Textile. He further mentioned that sustainability is constantly being mainstreamed in the development agenda of all industrial sectors, calling for greater efforts towards decarbonization of processes as well as national grid.
Ms. Ayla Majid, President of ACCA Global and CEO of Planetive, stressed the urgency of aligning power sector reforms with industrial strategy. She emphasized that while power wheeling is not new globally, reforms in Pakistan must be structured in a way that ensures cost-reflective wheeling tariffs and encourages renewable energy integration. Without effective planning and rationalized system charges, she cautioned, industries will continue to face unaffordable tariffs and persistent supply-side bottlenecks. She mentioned the significance of investments in grid modernization and flexibility for addressing the major bottlenecks of power sector.
During the panel discussion, Mujtaba Khan, CEO of Reon Energy and representative of the Power Wheeling Alliance, highlighted that Pakistan’s grid continues to face voltage and frequency issues, outages, and reliability gaps that limit the effectiveness of renewable integration. He emphasized that distribution companies remain the weakest link in the system, creating barriers to transparent and reliable wheeling arrangements. He concluded that power wheeling is an essential first step, but real impact will only be achieved when reforms across generation, transmission, and distribution are implemented in a coordinated manner.
Muhammad Aamir Ghaziani, CFO of K-Electric and Chairman of K-Solar, stated that Pakistan requires a modernized network before CTBCM can be implemented effectively. He added that this could be achieved through privatization of transmission and distribution networks to attract capital, improve efficiency, and ensure equitable access. Dr. Khalid Waleed, Research Fellow at SDPI, emphasized the need for holistic reforms that balance industrial competitiveness with consumer welfare. He highlighted the importance of low-carbon verifiability across supply chains to align with global industrial demands and underscored that while CTBCM is central to unlocking competitive markets, reforms must incorporate social safeguards to avoid inequity and maintain public trust. Dr Khalid further noted that aligning power sector reforms with sustainability goals is essential if Pakistan is to secure long-term industrial growth under increasingly strict global trade regimes.
Mr. Mr. Ahmad Qazi, Senior Director, Independent System and Market Operator (ISMO) ), provided clarity on the scope of reforms under the CTBCM framework and ISMO’s role in enabling a transparent and competitive electricity market. He highlighted that it is ISMO’s priority to ensure neutrality, transparency, and confidence among all stakeholders, enabling Pakistan’s gradual shift toward a competitive electricity market. While discussing market liberalization, he mentioned that reforms must balance stranded costs with long-term benefits such as lower purchase prices and reduced reliance on public investment.
Engr. Ubaid ur Rehman Zia, Head of SDPI’s Energy Unit highlighted the growing trend of solar PV adoption in Pakistan at industrial, residential, and the agriculture level. He mentioned that the net-metering quantum recently reached 8000 MW and the trend is likely to continue at both on-grid and off-grid level. Integrating this growth with the national grid is extremely significant, he added, and require investments for grid flexibility and modernization. He further mentioned that industrial competitiveness depends on aligning grid reforms with export requirements and CBAM compliance.
Engr. Ahad Nazir, Head of the Center for Private Sector Engagement and Center for Learning and Development at SDPI, stated that investment in new generation capacity is a direct driver of economic growth and industrial competitiveness. He stressed that liberalized market structures like CTBCM have the potential to enhance efficiency and accelerate Pakistan’s clean energy transition, but reforms must be approached with caution. He emphasized that governance structures must provide policy consistency, coordination among stakeholders, and inclusive participation to ensure successful outcomes.
