Ministry of Energy clarifies no military takeover of DISCOs

The Ministry of Energy, Power Division, has officially denied reports regarding the transfer of control over Distribution Companies (DISCOs) to the military. 

In a press release issued today, the ministry clarified that there have been no changes in the management of DISCOs, and there are no intentions to hand them over to any state institution.

This statement comes in response to recent speculations circulating in the media about a potential handover of DISCOs to the army, which the Ministry has now confirmed as incorrect.

Earlier, it was reported by Profit that the Federal Cabinet is poised to sanction the inception of Performance Management Units (PMUs) within five beleaguered power DISCOs and this move will place these entities under the oversight of a currently commissioned Brigadier of the Pakistan Army.

Consequently, a significant portion of Pakistan’s DISCOs will once again find themselves under the Army’s stewardship once more. 

The inaugural PMU is slated for installation within the confines of the Hyderabad Electric Supply Company (HESCO). This unit will be an amalgamation of officers hailing from the Pakistan Administrative Service, the Federal Intelligence Agency, and the Intelligence Bureau. The reins of the PMU will be held by a one-star general from the Pakistan Army — a Brigadier. This unit will maintain a direct line of communication with the Federal Secretary of the Power Division at the Ministry of Energy.

The decision comes in the wake of the Government of Pakistan’s Federal Footprint, State-Owned Enterprises (SOE) for fiscal year 2020-2022, which identified Pakistan’s power sector as the single biggest fiscal drain in the country, with losses of Rs 321 billion. The government-owned DISCOs contributed Rs 376 billion to the figure, thus single-handedly wiping out the profits made by the entire remaining power sector.