The electricity market is complex; it requires legal, financial and human capacity at every level. It requires healthy participants. We have moved from vertically integrated to the single-buyer model, but so far, failed in developing a wholesale market. There are private participants in the generation, but no competition due to guaranteed long-term contracts. Political and bureaucratic capture is so strong that it resists change. This capture discourages healthy participants to take part in the market and compete. Power sector (at present) do not satisfy the pre-requisites of a wholesale market.
Insights from Research on Pakistan’s Economy
October 7, 2024
