ISLAMABAD: The Power Division has been instructed to complete preparations for the privatisation of three major electricity distribution companies—Hyderabad Electric Supply Company (HESCO), Peshawar Electric Supply Company (PESCO), and Faisalabad Electric Supply Company (FESCO)—by the second quarter of fiscal year 2025-26. This update was shared during the eighth meeting of the Standing Committee on Privatisation, chaired by Muhammad Farooq Sattar, held at the Ministry of Privatisation on Wednesday.
The chairman of the Privatisation Commission briefed the committee that the terms and conditions for the privatisation of the three DISCOs are currently under review. A financial advisor will be appointed to conduct due diligence, and audits and accounts will be finalized as part of the preparatory work. The Power Division has been given until September–October 2025 to complete this groundwork, with the privatisation process expected to formally commence by the end of May.
The committee voiced strong concerns over the appointment of board members to power sector companies, stressing the need for merit and competence in these roles. It also mandated that the Chief Executive Officers (CEOs) of the relevant companies must attend the next committee session in person.
In another update, a representative from Postal Life Insurance Company Limited (PLICL) informed the committee that the company serves around 300,000 customers and has requested Rs8 billion from the Ministry of Finance this year. The committee demanded historical financial data from the past four to five years and emphasized the protection of policyholders. The Ministry of Finance was asked to clarify the status of PLICL’s funds.
The Utility Stores Corporation (USC) also presented a briefing on its current operations, including subsidy allocations, profits, tax payments, and staff structure. Under its restructuring plan, 1,203 utility stores have been shut down, and 2,237 employees laid off, leaving only 1,500 stores to operate on a commercial basis. The committee questioned the rationale for prioritising USC if it transitions into a profit-generating commercial entity.
A representative from the Ministry of Privatisation responded that a detailed presentation would be provided in the next meeting, noting that privatisation of profitable entities can be considered based on policy decisions. The committee, however, recommended a thorough review of USC’s privatisation plan, citing the impact on a large number of employees and their families.
Additionally, the committee reviewed the “Privatisation Commission (Amendment) Bill, 2024.” While the Ministry of Law representatives briefed the committee, they were directed to present legal precedents in the next meeting, leading the committee to defer the bill for future consideration.
