Power Division tasked with completing privatisation of three DISCOs by Q2 of FY2025-26

The government has set a deadline for the Power Division to complete its preparations for the privatisation of three power distribution companies (DISCOs) — Hesco, Pesco, and Fesco — by the second quarter of fiscal year 2025-26. 

This was revealed during a meeting of the Standing Committee on Privatisation, held under the chairmanship of Muhammad Farooq Sattar.

The Privatization Commission’s chairman informed the committee that the terms and conditions for the privatisation of the three DISCOs are under consideration. A financial adviser for conducting due diligence will also be hired, and the necessary audits and accounts will be maintained. 

The Power Division has been given a timeline until September or October 2025 to finalise these arrangements, with the privatisation process expected to begin by the end of May.

Concerns were raised by the committee regarding the appointments to the boards of governors for the power companies, urging that competency be prioritized in these selections. The committee also insisted that the CEOs of the companies attend the next meeting in person to address further questions.

In addition to discussing the privatisation of DISCOs, the committee also addressed the issue of Postal Life Insurance Company Limited (PLICL), which is requesting Rs 8 billion from the Ministry of Finance this year. 

The committee directed that figures from the past 4-5 years be provided, and emphasized the importance of protecting policyholders’ interests. The Ministry of Finance was urged to clarify the status of PLICL’s funds.

Regarding the restructuring of Utility Stores Corporation (USC), the committee received a briefing on the implementation of previous recommendations. It was reported that 1,203 USC stores have been closed, and 2,237 employees laid off as part of the restructuring plan. 

The committee recommended that the decision on USC’s privatization be revisited to consider the impact on employees and their families.

Additionally, the privatization of Pakistan Engineering Company Limited (PECO) was reviewed, with the committee granting three months for further resolution of issues. It was recommended that the chairman and managing director of PECO be appointed based on majority shareholding rather than government nominees.

The committee deferred discussion on the report regarding Pakistan International Airlines Corporation Limited (PIACL) until the next meeting.