ISLAMABAD: The Cabinet Committee on Energy has approved the establishment of an independent multiplayer market for power generation and purchase.

This move aims to create a competitive environment and gradually reduce the government`s role as the sole purchaser of electricity.

The committee, in its meeting chaired by Prime Minister Shehbaz Sharif, principally approved the formation of an Independent System and Market Operator (ISMO), which will be later endorsed by the federal cabinet and registered with the Securities and Exchange Commission of Pakistan under the Companies Act 2017, according to a PM Office press release.The ISMO aims to gradually do away with the government`s role as a sole buyer of electricity and turn the electricity market into a multiplayer, independent, transparent, and competitive market. It will also allow the power consumers to purchase electricity from suppliers other than power distribution companies.

Under ISMO, long-term planning would be made to produce low-cost electricity and its transmission, as well as reduce power prices and circular debt.

The ISMO Board will comprise the experts from the power sector.

The meeting participants were briefed on the power sector`s circular debt.

In his remarks, Prime MinisterShehbaz said the priority measures were being taken for the power sector reforms and instructed accelerated actions to reduce power theft and losses besides taking disciplinary action against the employees of the distribution companies involved in the theft.

The prime minister also directed the authorities to utilise modern technology to bring reforms and curb power theft.

Federal ministers Muhammad Aurangzeb, Ahsan Iqbal, Ahad Khan Cheema, Sardar Awais Ahmed Leghari, Dr Musaddik Malik, Minister of State Ali Pervaiz Malik, and other members of the committee attended the meeting.-APP