ISLAMABAD: Pakistan’s Federal Cabinet has approved the privatization of 13 entities under Pakistan’s Power Division, including nine power distribution companies.
According to media reports, out of 11 government-owned power distribution companies, nine will be privatized, while Quetta Electric Supply Company and Tribal Electric Supply Company have been excluded from this list.
Moreover, the cabinet has included power generation companies (GENCOs) in the privatization plan.
The cabinet also approved the designation of six Power Division entities, such as Power Holding Limited and the Central Power Purchasing Agency (CPPA), as ‘nationally important.’
Furthermore, it authorized the restructuring of four Power Division entities, including Quetta Electric Supply Company and Tribal Electric Supply Company, along with the Islamabad-based NTDC and NESPAK.
In a significant policy shift announced in May, Prime Minister Shehbaz Sharif expanded the scope of privatization beyond just loss-making enterprises.
He emphasized that the government’s role should focus on creating a business-friendly environment rather than directly managing businesses. The prime minister directed all federal ministries to cooperate with the Privatisation Commission to expedite the process.
The current privatization strategy, which spans from 2024 to 2029, includes a priority focus on loss-making state-owned enterprises. A pre-qualified panel of experts is being appointed to accelerate the privatization process. This initiative aligns with longstanding recommendations from the International Monetary Fund (IMF) for economic reform in Pakistan.
