By Digital Spartans 
Karachi residents will soon be able to choose their electricity supplier starting January 2026, as Pakistan moves toward a more competitive energy market. The initiative, part of the government’s plan to liberalize the power sector, was discussed during a recent meeting of the National Assembly’s Standing Committee on Power.
The development came during deliberations on the Multi-Vendor Electricity Distribution Bill, 2025, chaired by MNA Muhammad Idrees. The bill, presented by MNA Shahida Rehmani, seeks to open the electricity market to multiple vendors, allowing consumers greater choice and transparency. The committee decided to defer its final review until February 2026 to ensure comprehensive evaluation and stakeholder input.
During the session, Rehmani highlighted Karachi’s ongoing power challenges, including inefficiencies and losses under K-Electric’s management. She emphasized that a competitive power market could improve service delivery and reduce consumer frustration.
Power Division Secretary Dr. Fakhr Alam Irfan informed the committee that from January 2026, Karachi consumers, along with others across Pakistan, will be able to buy electricity directly from any registered supplier. Initially, around 200 megawatts (MW) of power will be made available for bulk purchase, focusing first on users with consumption up to one megawatt before expanding to other categories.
He added that Pakistan’s off-grid and net-metered solar capacity has now reached 18,000 MW, reflecting a major shift toward renewable energy adoption. However, he cautioned that this growing capacity poses challenges to grid stability and integration, requiring careful management and monitoring by the government.
Dr. Irfan further explained that electricity generated through the national grid and net-metering systems cannot be directly compared, as grid power includes additional costs—approximately Rs14 per unit for capacity and Rs9 for taxes. In contrast, net-metered power remains significantly cheaper.
Currently, net-metered capacity stands at 6,000 MW, while off-grid solar installations are estimated at 12,000 MW, based on satellite assessments. Officials warned that rapid expansion of such systems, without proper grid synchronization, could impact power quality and system reliability.
The move to allow Karachi and other regions to select their electricity providers marks a major policy shift, promising competition, efficiency, and consumer empowerment in Pakistan’s evolving energy landscape.