ISLAMABAD: The Competition Commission of Pakistan (CCP) has said that the strong presence of state-owned enterprises (SOEs) in the transmission and distribution sectors leaves little room for private firms, creating barriers to entry and limiting market competition.

A research report titled “State of Competition in the Key Markets in Pakistan: Power Sector”, released by the CCP on Friday, highlights the extensive role of SOEs and the resulting impact on competition within the power sector.

At the report’s launch, CCP Chairman Dr Kabir Ahmed Sidhu emphasised the critical role of a competitive power sector in driving economic growth and providing affordable energy to consumers.

He said the report would be a catalyst for policy discussions to foster a competitive and efficient power sector.

The report details structural, regulatory, and strategic challenges within the power sector, long dominated by SOEs.

It identifies barriers to competition such as high capital requirements, monopolistic frameworks, outdated infrastructure, and geographical constraints, which collectively hinder the entry of new players.

Published in Dawn, November 9th, 2024