Pakistan Türkiye Sign Three MoUs: Bringing more sectors into the circle of friendship and cooperation I
Dr. Syed Mehboob
Economic and Political Analyst
http//: www.thenewslark.com
Pakistan and Türkiye are two brothers, close relatives, staunch supporters of each other, devoted friends in need and friends indeed. Their friendship is historical, time-tested, deep-rooted, deeper than oceans, greater than K2 and sweeter than honey. Whenever the name of Türkiye comes into the minds and hearts and whenever we pronounce it, it gives the sense of love, closeness, warmth and brotherhood. Indeed, Türkiye is in our heartbeats.
To take mutual friendship to new heights, Pakistan and brother country Türkiye signed three Memoranda of Understanding (MoUs) on 25th June 2026. They aim to enhance institutional collaboration, cooperation, and knowledge sharing in the power sector during high-level consultations held in Islamabad. The agreements were signed as part of ongoing cooperation between the two brotherly countries in the energy sector.
The MoUs were signed between Pakistani and Turkish energy sector entities: Independent System and Market Operator (ISMO) and Energy Exchange Istanbul (EPIAS); ISMO and the Turkish Electricity Transmission Corporation (TEIAS); and the Power Planning and Monitoring Company (PPMC) and the Turkish Electricity Distribution Corporation (TEDAS).
The agreements establish formal frameworks for cooperation in areas including post-privatization governance framework, electricity market development, ancillary services regulations formulation, power system operations, transmission planning, distribution sector management, digitalization, capacity building, institutional strengthening, and the exchange of technical expertise.
Federal Minister for Energy (Power Division), Sardar Awais Ahmad Khan Leghari, welcomed the signing of the MoUs and noted that these partnerships represent an important step towards strengthening Pakistan’s energy institutions through collaboration with leading Turkish counterparts.
He emphasized that Pakistan is committed to learning from Turkiye’s successful experience in electricity market reform, transmission system development, distribution sector modernization, and the integration of advanced technologies into power sector operations.
The MoUs were signed between Pakistani and Turkish energy sector entities: Independent System and Market Operator (ISMO) and Energy Exchange Istanbul (EPIAS), ISMO and the Turkish Electricity Transmission Corporation (TEIAS), and the Power Planning and Monitoring Company (PPMC) and the Turkish Electricity Distribution Corporation (TEDAS).
The agreements establish formal frameworks for cooperation in areas including post-privatization governance framework, electricity market development, ancillary services regulations formulation, power system operations, transmission planning, distribution sector management, digitalization, capacity building, institutional strengthening, and the exchange of technical expertise.
Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari welcomed the signing of the MoUs and noted that these partnerships represent an important step towards strengthening Pakistan’s energy institutions through collaboration with leading Turkish counterparts.
Mr. Owais Leghari said that Pakistan was committed to learning from Türkiye’s successful experience in electricity market reform, transmission system development, distribution sector modernization, and the integration of advanced technologies into power sector operations. The minister highlighted the importance of learning from Turkish experience regarding the post-privatization framework development and managing the power sector in a privatized environment. He further highlighted that cooperation between sector institutions would facilitate the transfer of practical knowledge, operational experience, and best practices that can support Pakistan’s ongoing efforts to improve efficiency, enhance service delivery, strengthen governance, and build a more sustainable and competitive power sector.
The Turkish side expressed its commitment to supporting long-term institutional cooperation and welcomed the opportunity for both countries to work closely. The signing of the MoUs would pave the way for joint technical initiatives, expert exchanges, training programmes, study visits and collaborative projects aimed at advancing energy sector development in Pakistan.
The government of Pakistan views these agreements as an important outcome of the Pakistan–Türkiye energy dialogue and a concrete demonstration of the growing strategic partnership between the two brotherly nations in the energy sector. The agreements were signed during high-level consultations held in Istanbul between Federal Minister for Energy Sardar Awais Ahmed Khan Leghari and Turkish Energy Minister Alparslan Bayraktar.
Two of the MoUs were signed between Pakistan's Independent System and Market Operator (ISMO) and Türkiye’s Energy Exchange (EPIAS) and Transmission System Operator (TEIAS), while a third MoU was signed between Pakistan's Power Planning and Monitoring Company (PPMC) and the Türkiye Electricity Distribution Corporation (TEDAS).
Türkiye offered technical assistance for reforms in Pakistan's energy sector and assured support for increasing contacts between Pakistani authorities and Turkish companies. It also agreed to share its experience in privatization and electricity distribution.
Türkiye expressed support for Pakistan's power sector reform and privatization programme, while Turkish investors were invited to invest in Pakistan's electricity sector. Both sides decided to enhance cooperation aimed at improving the financial sustainability and performance of Pakistan's power sector. They further agreed to promote a long-term partnership in the energy sector.
ISMO plays a central role in the power sector of Pakistan by managing the real-time flow of electricity, facilitating fair market operations, and planning for the country’s future energy needs. As an independent public sector organization, we ensure that these functions are carried out with transparency, professionalism, and in the public interest.
In a significant step toward reforming Pakistan’s power sector, the Cabinet Committee on Energy (CCoE) recently approved the formation of the Independent System and Market Operator (ISMO). This move is seen as crucial for addressing longstanding inefficiencies in the power sector and advancing the country’s Competitive Trading Bilateral Contract Market (CTBCM).
The creation of ISMO will bring a new era of market liberalization, potentially transforming how electricity is traded, distributed, and consumed across the nation. At its core, the ISMO will serve as an independent body responsible for overseeing both the system operations and the electricity market, ensuring a level playing field for all participants.
Essentially, it merges the current functions of the Market Operator (MO) of Central Power Purchasing Agency (CPPA-G) and the National Power Control Center (NPCC) of National Transmission and Dispatch Company (NTDC) under one roof.
ISMO will have the critical role of managing and balancing supply and demand in the electricity grid while also facilitating transparent, market-based electricity trading between generators, distributors, and consumers.
By introducing competition into what has traditionally been a highly centralized and monopolistic system, ISMO will allow various market players to engage directly with one another, much like other wholesale electricity markets around the world. (Continued)
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