Mian Zahid Hussain, Sitara-e-Imtiaz, Hon. Ph.D., President of the Pakistan Businessmen and Intellectuals Forum (PBIF), Chairman of the National Business Group (NBG), and Chairman of the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), today declared the launch of the Independent System and Market Operator (ISMO) and the Competitive Trading Bilateral Contract Market (CTBCM) as a decisive, watershed moment for the nation’s economy. He stated that the long-standing energy crisis is affecting industrial competitiveness, and the introduction of ISMO and the CTBCM officially marks the end of the inefficient single-buyer model.
“For the first time, our medium-to-large industries, classified as Bulk Power Consumers, have the landmark opportunity to bypass fixed tariffs, negotiate direct contracts with power generators, and access cheaper, more reliable electricity. This ability to procure lower-cost energy is critical for boosting our exports and making Pakistani products competitive in the global market.”
Despite this immense potential, Mian Zahid Hussain issued a sharp warning that the reform’s success is far from guaranteed. He highlighted two fundamental threats that must be managed in parallel to the market launch: the crushing burden of legacy debt and the systemic failure of the distribution companies (DISCOs), which rely on costly ‘take-or-pay’ contracts with IPPs.
“The government must courageously and immediately ring-fence the new CTBCM to legally protect participants from bearing these legacy costs. Imposing new surcharges or levies on competitive transactions would destroy the price advantage at birth and defeat the entire purpose of the reform.”
Mian Zahid Hussain emphasized that the ten state-owned DISCOs are the ‘Achilles’ heel’ of the power sector. Their inefficiencies and financial issues undermine the competitive market, making the reform of the distribution segment a pressing priority that demands strong political commitment to privatization.
Mian Zahid Hussain also addressed the risk of creating a “two-tiered system,” where large corporations benefit from competition. At the same time, Small and Medium-sized Enterprises (SMEs) are left behind to shoulder rising legacy costs. He called on trade bodies to champion aggregation models that allow groups of SMEs to pool demand and access the competitive market.
Mian Zahid Hussain called for the private sector to shift from passive consumption to active market involvement. He emphasized the need for strong political will and an educated private sector to reform DISCOs and support ISMO’s autonomy. He urged the business community to advocate for fair wheeling charges to ensure industry voices shape economic policies.
