PM Shehbaz directs to speed up privatisation process of power distribution, generation companies

Prime Minister Shehbaz Sharif on Monday directed to accelerate the privatisation process of electricity distribution (DISCOs) and generation companies (GENCOs), the Prime Minister Office (PMO) said.

Chairing a review meeting on power sector reforms in Islamabad, PM Shehbaz emphasised that establishing a competitive electricity market through privatisation is the only sustainable solution to the country’s energy challenges.

According to the PMO, the prime minister instructed that development projects aimed at improving the electricity transmission system be completed on a priority basis. He further directed that work on the Battery Energy Storage System be initiated through public-private partnerships, with active participation from the private sector, to align the power system with modern-day requirements.

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During the meeting, Premier Shehbaz was briefed on progress in electricity generation, transmission, privatisation of DISCOs and GENCOs, and other reforms in the power sector.

The forum was told that steps are underway for the privatisation of three distribution companies, including Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO), with the expressions of interest to be published soon.

It was informed that the PC-1 of the 500 KV Ghazi Barotha-Faisalabad transmission line is in the approval stages to strengthen the transmission system. Technical feasibility for converting plants from imported coal to Thar coal has been completed, while work on the railway line to transport Thar coal to the plants is ongoing.

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The meeting also reviewed the operationalisation of a competitive electricity market.

It was apprised that as a result of continuous efforts, line losses have decreased compared to last year. The concept clearance proposal for the Battery Energy Storage System project has been approved and its feasibility study is currently in progress.