The government in Islamabad is taking proactive steps to review the privatization of power distribution companies (DISCOs) in order to enhance their performance and reduce losses, as per sources.
A meeting has been scheduled by the Power Division with all distribution companies to discuss the privatization preparations. The focus will be on evaluating the readiness of DISCOs for privatization and addressing the specifics of the process, with CEOs of all DISCOs summoned to attend.
With approval for the privatization of 9 DISCOs already secured, the initial phase will target FESCO, IESCO, and GEPCO. A recent audit report exposed that these power companies cost the nation over Rs196 billion in just one year, significantly exceeding NEPRA’s set limit.
The report links the excessive losses to outdated transmission lines and lengthy feeders, underscoring the financial strain on the national exchequer due to the inefficiencies of these power companies. The government’s decision to reassess the privatization process comes as a timely intervention to revamp the power sector and address the substantial losses incurred.