PM announces transfer of Discos to provinces in two months

Prime Minister Shehbaz Sharif announced that his government will transfer power distribution companies (Discos) to the provinces within the next two months. The decision was revealed during a meeting on Monday with a Pakistan Peoples Party (PPP) delegation, led by its Chairman Bilawal Bhutto-Zardari.

The move comes as the government has been exploring various options to deal with the financial troubles of the Discos, which have been suffering from heavy losses due to inefficiencies in recovery and transmission. 

A similar announcement was made by the prime minister last month, where he highlighted the need to reduce electricity costs by tackling losses of over Rs600 billion annually, largely due to electricity theft. 

The plan also involves either privatising the Discos or handing them over to provincial control to improve their performance.

According to the Ministry of Finance’s report published in February, Pakistan’s state-owned enterprises (SOEs) recorded losses of Rs851 billion in FY24, and the power sector remained the largest contributor to these losses. 

An official press release from the Prime Minister’s Office (PMO) confirmed the decision, stating that the transfer of the Discos to the provinces would occur within two months. 

The PPP delegation expressed its confidence in the government’s ongoing reforms in the energy sector, which aim to address the challenges facing the power distribution system.

In addition to discussions about the power sector, the meeting also focused on the upcoming federal budget, expected to be announced in the first week of June. 

Prime Minister Shehbaz mentioned that consultations with the government’s allies, including the PPP, are already underway. The PPP delegation presented its proposals for the fiscal year 2025-2026 budget.