The Government of Pakistan has decided to follow the Turkish model of outsourcing the management of power distribution companies (DISCOs) to the private sector, in a bid to reduce losses, improve efficiency and attract investment.
Express Tribune reported that the decision was taken in a meeting of the Cabinet Committee on Privatisation (CCOP), where it was agreed that the government would engage a transaction adviser for long-term concessions by the end of April 2024.
The World Bank has offered technical assistance and risk guarantee instruments for the process, while the International Finance Corporation has expressed interest in providing transaction advisory services.
The CCOP was informed that the Turkish model had delivered the benefits of private sector participation in 20 DISCOs, which resulted in lower losses, better service quality, higher investment, and minimal tariff increase.
The meeting also noted that the privatisation of DISCOs had faced legal and political challenges in the past and that the transfer of DISCOs to provincial governments was unlikely to bring the desired results.
The Power Division proposed that initially two smaller DISCOs, the better-performing Gujranwala Electric Power Company (Gepco) and the poor-performing Hyderabad Electric Supply Company (Hesco), may be earmarked for the concession model.
The Power Division said that the power sector’s difficulties stemmed primarily from the operational performance of 10 DISCOs, which faced poor governance and inadequate investment.
The CCOP observed that the case relating to private sector participation in the operation of DISCOs through long-term concession contracts fell within the domain of the Privatisation Commission rather than the Power Division. Therefore, the matter should be dealt with by the Privatisation Commission.
government should revisit giving full autonomy to k electric generation transmission distribution work and devid into three companies
At least govt is trying to control losses, does not matter it is Turkish/ Chinese or any other model. Please try to reduce the free electricity given to present/ past high up. Poor public how long can pay the perks of these elites present/ past.
Allah knows what is restricting govt to reduce perks of elites. My request to high ups of civil/ militarily personnels to voluntarily come up to reduce their free electricity.
These people should consider this reduction as payment of zakat.
The Govt should adopt the best practices of the world advanced Distribution companies. we are not able to decide what we should have to do, taking long years in deciding either to privatise the Discos, provincialisation, outsourcing of management.
Actual the weak area is decision making team that is not able to put the right direction and the departments and autonomous bodies are working in silos that’s why we are wasting much of time in planning and development.
What is Terkish model has not been explained? why we failed imolement Turkish model in KEC. please do study through before deciding any thing.
Unless you renogtiate with power producers this Tom n Jerry story will keep going.Corruption n theft in Discos also to be controlled
Time has come to stop giving free units to any one. Everybody including the Prime Minister must pay for the units consumed.
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HEADLINES
February 28, 2024
Pakistan to follow Turkish model of outsourcing power distribution companies
World Bank offers technical assistance, the International Finance Corporation expresses interest in providing transaction advisory services
By Monitoring Desk
The Government of Pakistan has decided to follow the Turkish model of outsourcing the management of power distribution companies (DISCOs) to the private sector, in a bid to reduce losses, improve efficiency and attract investment.
Express Tribune reported that the decision was taken in a meeting of the Cabinet Committee on Privatisation (CCOP), where it was agreed that the government would engage a transaction adviser for long-term concessions by the end of April 2024.
The World Bank has offered technical assistance and risk guarantee instruments for the process, while the International Finance Corporation has expressed interest in providing transaction advisory services.
The CCOP was informed that the Turkish model had delivered the benefits of private sector participation in 20 DISCOs, which resulted in lower losses, better service quality, higher investment, and minimal tariff increase.
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The meeting also noted that the privatisation of DISCOs had faced legal and political challenges in the past and that the transfer of DISCOs to provincial governments was unlikely to bring the desired results.
The Power Division proposed that initially two smaller DISCOs, the better-performing Gujranwala Electric Power Company (Gepco) and the poor-performing Hyderabad Electric Supply Company (Hesco), may be earmarked for the concession model.
The Power Division said that the power sector’s difficulties stemmed primarily from the operational performance of 10 DISCOs, which faced poor governance and inadequate investment.
The CCOP observed that the case relating to private sector participation in the operation of DISCOs through long-term concession contracts fell within the domain of the Privatisation Commission rather than the Power Division. Therefore, the matter should be dealt with by the Privatisation Commission.
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6 COMMENTS
MOHAMMAD ANWAR February 29, 2024 At 11:26 am
government should revisit giving full autonomy to k electric generation transmission distribution work and devid into three companies
Reply
MANSUR UL HAQUE
February 29, 2024 At 5:41 pm
At least govt is trying to control losses, does not matter it is Turkish/ Chinese or any other model. Please try to reduce the free electricity given to present/ past high up. Poor public how long can pay the perks of these elites present/ past.
Allah knows what is restricting govt to reduce perks of elites. My request to high ups of civil/ militarily personnels to voluntarily come up to reduce their free electricity.
These people should consider this reduction as payment of zakat.
Reply
ZAKIR HUSSAIN March 1, 2024 At 10:06 am
The Govt should adopt the best practices of the world advanced Distribution companies. we are not able to decide what we should have to do, taking long years in deciding either to privatise the Discos, provincialisation, outsourcing of management.
Actual the weak area is decision making team that is not able to put the right direction and the departments and autonomous bodies are working in silos that’s why we are wasting much of time in planning and development.
Reply
WAHEED UD DIN March 1, 2024 At 3:58 pm
What is Terkish model has not been explained? why we failed imolement Turkish model in KEC. please do study through before deciding any thing.
Reply
JAFFAR HASSAN NAQVI March 1, 2024 At 4:10 pm
Unless you renogtiate with power producers this Tom n Jerry story will keep going.Corruption n theft in Discos also to be controlled
Reply
CAPT. SAEED AHMED March 1, 2024 At 8:09 pm
Time has come to stop giving free units to any one. Everybody including the Prime Minister must pay for the units consumed
prepaid.meters for electricity and gas to b installed all over Pakistan, preference to b given to tax payers premises
Powers theives should be black listed for new connection for ever and DISCOS staff involved should be shunted out.
DISCOS staff is corrupt mostly. customers feedback system should be activated and black sheep should be flushed out.
@A I need help please I request you help me 🙏