ISLAMABAD: Prime Minister Shehbaz Sharif has dismissed the boards of eight power distribution companies (DISCOs) constituted by the previous Pakistan Democratic Movement (PDM) government. The decision follows allegations of massive financial losses amounting to Rs589 billion for the fiscal year.
To address these issues, the PML-N government plans to enhance governance in these companies by involving military and intelligence agencies, invoking Article 245 of the Constitution and the Anti-Terrorism Act. A Distribution Companies Support Unit (DSU) will be established, with the first DSU set up at Multan Electric Power Company (MEPCO). The unit will be co-directed by the army’s sector commander and include representation from the Inter-Services Intelligence Agency (ISI), Military Intelligence (MI), and the Intelligence Bureau.
The Cabinet Committee on State-Owned Enterprises (CCOSOEs) approved the Power Division’s proposal to remove and nominate new members for the boards of eight DISCOs, excluding two in Sindh—Sukkur Electric Power Company (SEPCO) and Hyderabad Electric Supply Company (HESCO). These companies also face significant losses but were spared due to political considerations.
The decision to sack the boards, many of which were filled with political appointees during the PDM government, was made due to poor governance and performance. New independent directors have been nominated for the affected companies, pending cabinet approval. Notable appointments include Amer Zia as chairman for three boards (Islamabad, Lahore, and Multan) and Zoe Khurshid Khan as a member for three boards (Faisalabad, Gujranwala, and Lahore).
In a broader move to reduce government involvement in the sector, the CCOSOEs also designated Pakistan Television (PTV) and Pakistan Broadcasting Corporation (PBC) as strategic and essential, while categorizing several railway companies as non-strategic, making them eligible for privatization.
The restructuring and new governance measures aim to mitigate future losses and improve the efficiency and service delivery of the power distribution companies.
Story by Shahbaz Rana
