ISLAMABAD: Prime Minister Shehbaz Sharif has directed the Power Division to implement a dual approach for Power Distribution Companies (Discos), focusing on both provincialisation and privatisation, to fulfill commitments to development partners, according to informed sources.
During a recent meeting on power tariff reduction and Discos’ ownership, the Prime Minister instructed the Power Division to prepare a comprehensive roadmap and timeline for transferring ownership and control of Discos to provincial governments. This process is to be undertaken in consultation with provinces and submitted for his review and approval.
Simultaneously, privatisation efforts for IESCO, FESCO, and GEPCO, identified as the first phase, are to proceed on a strict timeline, with necessary conditions to be fulfilled by January 31, 2025.
The Privatisation Commission has sought updates from the Power Division regarding progress on these prerequisites, which include recognising off-balance-sheet liabilities and aligning with corporate and financial reporting standards.
As part of the phased privatisation plan ratified by the federal cabinet in August 2024, the commission is finalising the appointment of a Financial Advisor and coordinating with the Power Division on key milestones. These include:
Notifying licensing criteria and performance standards for distribution and supply.
Revising tariff rules for uniformity and subsidy guidelines.
Cleaning up Discos’ balance sheets and restructuring share issuance.
Implementing anti-theft and recovery mechanisms with provincial support.
Preparing for the Competitive Trading Bilateral Contract Market (CTBCM) to align with the National Electricity Policy.
The government remains committed to expediting the process to ensure efficiency and financial viability in the power sector.
Story by Mushtaq Ghumman
