ISLAMABAD: The Federal Cabinet has approved the privatization of 13 entities under Pakistan’s Power Division, including nine power distribution companies. This decision marks a significant step in the country’s ongoing efforts to reform its state-owned enterprises.
Sources indicate that of the 11 government-owned power distribution companies, nine have been slated for privatization. Notably, the Quetta Electric Supply Company (QESCO) and the Tribal Electric Supply Company (TESCO) are excluded from this list. In addition to the power distribution companies, the cabinet has also included power generation companies (GENCOs) in the privatization plan.
The federal cabinet has also designated six Power Division entities, including Power Holding Limited and the Central Power Purchasing Agency (CPPA), as ‘nationally important entities,’ ensuring their continued oversight. Moreover, the restructuring of four Power Division entities has been approved, including QESCO and TESCO, as well as the Islamabad-based National Transmission and Dispatch Company (NTDC) and NESPAK.
This move follows Prime Minister Shehbaz Sharif’s earlier announcement in May to privatize all state-owned enterprises, extending beyond the initial focus on only loss-making firms. During a meeting on the privatization process, the Prime Minister emphasized that the government’s role should be to foster a business-friendly environment rather than to engage in business operations directly.
Sharif directed federal ministries to cooperate with the Privatisation Commission to facilitate the process, with the privatization of power distribution companies now included in the 2024-2029 privatization program. The government has also indicated that loss-making state enterprises will be prioritized for privatization, with a pre-qualified panel of experts being appointed to expedite the process.
Privatization has long been a key recommendation of the International Monetary Fund (IMF) for Pakistan, aimed at improving efficiency and reducing fiscal burdens.
