The government is planning to privatize ten distribution companies (DISCOs) throughout the country to curb the losses and improve management.
Sources told ProPakistani that in the first phase, Peshawar Electric Supply Company (PESCO) and Islamabad Electric Supply Company (IESCO) will be privatized. Both companies incurred a combined loss of Rs. 394 billion during the fiscal year 2020-21 (FY21).
The federal government wants the provincial governments to be on board with the decision before the process of privatization. Provinces have been offered to run the management of these DISCOs, however, this proposal has only been accepted by Sindh so far. Sources say that if the management issues were left to the buyers, the administration system of these companies would experience a significant improvement.
Regarding the privatization process, the concessional contract has already been approved and now the government is edging closer to privatizing these DISCOs.
Apart from these two companies, Faisalabad Electric Supply Company Limited (FESCO), Lahore Electric Supply Company Limited (LESCO), Gujranwala Electric Power Company Limited (GEPCO), Multan Electric Power Company Limited (MEPCO), Hyderabad Electric Supply Company Limited (HESCO), Quetta Electric Supply Company Limited (QESCO), and Sukkur Electric Power Company (SEPCO) are also awaiting privatization.
Initially, the Water and Power Development Authority (WAPDA) was assigned the duty to privatize these loss-bearing DISCOs, however, the authority only managed to privatize K-Electric. These companies are causing a huge loss to the national exchequer, and several attempts have been made to sell these companies.
