ISLAMABAD: The Central Power Purchasing Agency–Guaranteed (CPPA-G) has sought a formal role in dealing with power distribution companies (Discos) alongside the Power Division’s technical wing, the Power Planning and Monitoring Company (PPMC), which has replaced Pakistan Electric Power Company (PEPCO).
In a letter to Power Minister Sardar Awais Ahmad Khan Leghari, Chairman of the Board of Directors of CPPA-G, Irfan Ali — former Secretary Power Division — appreciated the Minister for extending full support to CPPA-G in the successful completion of the first phase of circular debt (CD) financing.
Recently, the government raised Rs 1.225 trillion from commercial banks to reduce circular debt, with the amount to be recovered from consumers at Rs 3.23 per kWh for six consecutive years as Debt Service Surcharge (DSS).
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The Power Minister has appreciated the Board of Power Holding Limited (PHL) for its proactive role in resolving the circular debt issue and has also recommended bonuses for officials involved in the process. However, it remains unclear whether a similar letter was sent to the CPPA-G Board.
“We would also like to acknowledge the guidance provided by the Power Division under your leadership. You have very rightly indicated that this is only the beginning of a process that should culminate in the ultimate reduction of circular debt,” Irfan Ali said adding that “this cherished goal can only be achieved through concerted efforts by CPPA-G, the Discos and, very importantly, the PPMC, all under your active leadership.”
Irfan Ali was made an Officer on Special Duty (OSD) by former Prime Minister Imran Khan due to differences with the then principal secretary to the prime minister, Azam Khan, who later turned approver against Imran Khan in the cipher case. Irfan Ali was not assigned any role until his retirement upon reaching superannuation. “I would also like to add that the CPPA-G Board strongly believes that the main indicator of the success of this initiative will be the reduction in the burden on bill-paying consumers. This can only be achieved through consistent and sincere efforts by Discos to reduce losses and curb power theft,” he added.
As Secretary Power Division, Irfan Ali had earlier opposed the privatisation of Discos, arguing that their performance could be improved through dedicated and sustained efforts.
“We are satisfied to note that the reforms introduced by the government through the National Electricity Policy 2021 and the National Electricity Plan 2023–27 are beginning to bear fruit,” he said, adding that the steps recommended by the task force and approved by the cabinet have also played a major role in reforming the tariff structure. He further emphasised that to ensure the success of the current circular debt financing initiative, efforts by Discos to reduce theft—along with effective monitoring by the technical wing of the Power Division and CPPA-G, supported by sustained coordination from the Power Division — would be of paramount importance.
Copyright Business Recorder, 2026
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