Govt to 'review' preparation for DISCOs' privatization

ISLAMABAD: The government has decided to review the privatization of power distribution companies (DISCOs) to improve their performance and reduce losses, ARY News reported citing sources.

According to sources, the Power Division has called a meeting with all distribution companies to discuss preparations for privatization.

The meeting will review the preparations of all DISCOs for privatization and discuss the details of the process whereas the CEOs of all DISCOs have been called to attend the meeting.

The government has already approved the privatization of 9 DISCOs, and the first phase will include the privatization of FESCO, IESCO, and GEPCO.

Earlier, the Auditor General of Pakistan’s audit report for 2023-24 revealed that the power companies caused over Rs196 billion to the national exchequer in one year.

READ: DISCOs incurred over Rs196b loss to national kitty: Report

Eight power companies incurred losses exceeding the stipulated limit, resulting in a massive loss of national kitty.

The report highlighted that the power companies’ losses exceeded the limit set by NEPRA, ranging from 8.84% to 20.16%. PESCO topped the list, causing a loss of Rs133 billion, followed by SEPCO (Rs19 billion and 17 crore), LESKO (Rs14 billion and 954 crore), FESCO (Rs6 billion and 29 crore), MEPCO (Rs3 billion and 80 crore), and GEPCO (over Rs2 billion and 87 crore).

The report attributes the excessive losses to old transmission lines and long feeders. The power companies’ inability to meet the stipulated limit has resulted in a major financial burden on the national exchequer.