A disagreement has emerged between federal officials and lawmakers over DISCOs privatisation in Pakistan, centering on whether the constitutional forum representing provinces must grant fresh approval before the state-owned power distribution companies can be sold.
During a meeting of a subcommittee of the Senate Functional Committee on Devolution, lawmakers argued that electricity distribution directly impacts provincial interests under Article 157 of the Constitution. Subcommittee convener Senator Zamir Hussain Ghumro maintained that the Council of Common Interests (CCI)—a constitutional body that resolves policy disputes between the federal government and provinces—must deliberate on the transaction to preserve transparency and protect provincial rights.
Government Defends Existing Approvals
Adviser to the Prime Minister on Privatisation Muhammad Ali rejected the call for fresh consultations, stating that the legal requirements for DISCOs privatisation in Pakistan have already been satisfied. He informed the committee that the CCI approved the sale of nine distribution companies and three power generation firms back in 2011.
Ali explained that the Council also cleared the National Electricity Policy on June 21, 2021, which formally instructed the government to evaluate privatisation options for underperforming state entities. To substantiate this stance, the federal privatisation division cited a formal opinion issued by the Law Division on September 25, 2026, which confirmed that no new CCI mandate is legally necessary.
Officials cautioned lawmakers that restarting the approval process at the Council would introduce severe delays, discourage potential investors, and worsen the financial stability of the utilities.
Staggering $30bn Losses in Power Sector
The privatisation chief stressed the urgency of structural power sector reforms in Pakistan, pointing out that distribution companies have piled up more than $30 billion in cumulative losses over the last 15 years. Systemic electricity theft, low recovery rates, and operational shortcomings have continued to drain federal coffers.
Government representatives noted that the CCI had historically made 11 decisions touching on the sector, and official records show no province had formally registered dissent. However, the Senate subcommittee directed authorities to submit complete documentation of all historical council decisions and provincial consultation records for thorough parliamentary scrutiny.
Timeline: what has happened so far
- 2011: The Council of Common Interests approves the privatisation of nine distribution companies and three generation companies.
- June 21, 2021: The CCI approves the National Electricity Policy, recommending privatisation paths for state power entities.
- 2023–2024: Federal authorities advance procedural groundwork under the approved privatisation framework.
- September 25, 2026: The Law Division formally reconfirms that existing approvals suffice and no new CCI nod is required.
Aasan alfaaz mein
Bijli taqseem karne wali sarkari companiyon ki nijkari par hakoomat aur Senate committee aamne saamne aa gaye hain. Senate panel ka kehna hai ke soobon ki marzi ke baghair faisla nahi hona chahiye, jabkay hakoomat kehti hai ke purani manzoori kafi hai. In companiyon ne 15 saal mein 30 arab dollar se zyada ka nuqsan kiya hai. Aam shehriyon ke liye iska asar bijli ke bills aur load-shedding par par sakta hai.
