KARACHI – Consumers in Karachi, along with other parts of Pakistan, will have the freedom to select their electricity providers starting January 2026, under the government’s initiative to introduce a competitive power market, The News reported on Wednesday.
The National Assembly’s Standing Committee on Power, chaired by MNA Muhammad Idrees, convened to discuss the “Multi-Vendor Electricity Distribution Bill, 2025,” proposed by MNA Shahida Rehmani. The committee, however, decided to defer detailed consideration of the bill until February 2026 to allow for further review.
During the session, Rehmani highlighted Karachi’s longstanding electricity challenges, pointing out inefficiencies and rising losses under K-Electric’s management.
Power Division Secretary Dr. Fakhr Alam Irfan explained that starting January 2026, consumers will be able to buy electricity from any licensed power company. Initially, approximately 200 megawatts (MW) of electricity will be offered for bulk purchase, with open-market access first extended to consumers using up to one megawatt of power before gradually including other categories.
The committee was also briefed on the rapid growth of Pakistan’s off-grid and net-metered solar capacity, which has now reached 18,000 MW. While this surge in renewable energy marks progress, officials warned that it poses potential challenges for the stability of the national grid if not carefully integrated.
Dr. Irfan noted that electricity supplied through the grid involves additional costs – Rs14 for capacity and Rs9 for taxes – whereas net-metered power remains cheaper. Currently, net-metered capacity stands at 6,000 MW, with off-grid solar installations estimated at 12,000 MW, based on satellite data. Officials cautioned that managing the growing load from these renewable sources will be critical to maintaining grid stability.
This move is being seen as a significant step toward liberalizing Pakistan’s electricity market, aiming to improve efficiency, increase competition, and offer consumers more choice in their power supply.
