Provincial governments have yet to clear Rs161 billion owed to the federal government for electricity charges, the Senate Standing Committee on Power was informed on Friday. The committee convened to discuss issues including the adjustment of provincial power dues via the National Finance Commission (NFC) and the privatisation of power distribution companies (DISCOs).
Committee Chairman Senator Mohsin Aziz noted that provinces claim the federal government has not settled pending dues, while Power Division officials confirmed that Punjab owes Rs42 billion, Sindh Rs68 billion, Balochistan Rs42 billion, and Khyber Pakhtunkhwa Rs10 billion.
Officials clarified that these amounts pertain to power supplied to provincial departments, while federal dues may include hydel power adjustments.
Power Minister Awais Leghari said he recently discussed the issue with the Finance Ministry and has written to all provincial chief ministers urging the settlement of outstanding payments.
Leghari also updated the committee on DISCOs, stating that board reconstitutions have reduced losses by Rs140 billion as of March. He reiterated the government’s commitment to privatising DISCOs within three years, with three companies set for privatisation in the first phase.
A financial advisor has completed due diligence, and Leghari expressed confidence the privatisation process for the initial three DISCOs will be finalised within six months, though the committee chair suggested it could extend to June next year.
