Parliamentary Panel Flags Concerns Over DISCOs’ Privatization Before IMF Review
Committee warns selective approach may deepen financial woes as $1bn tranche hangs in balance
By M. Ilyas Mullakhel
Islamabad: Just days before the IMF’s second economic review, the National Assembly’s Standing Committee on Economic Affairs has raised strong objections to the government’s privatization strategy for power distribution companies (DISCOs).
Chaired by Muhammad Atif, the committee criticized the plan to privatize only profitable utilities — IESCO, GEPCO, and FESCO — while leaving loss-making companies under state control. Members cautioned that such a selective approach would increase the government’s financial burden and complicate future privatization of weaker DISCOs.
Officials briefed the panel that despite having 7,000–8,000 MW surplus generation capacity, much of it remains unused, forcing the government to bear heavy capacity payments. Currently, 54% of electricity is produced from conventional fuels and 46% from clean energy.
The government fell short of its FY 2024–25 privatization target of Rs. 8 billion, but set an ambitious Rs. 86.55 billion goal for FY 2025–26. Experts warn this is unlikely without a concrete reform and policy action plan.
With the IMF’s second review scheduled from Sept. 25 to Oct. 8, the privatization of DISCOs and reforms in public finance, transparency, and accountability will be critical to securing the next $1+ billion tranche.
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