Continuation cleared until Sept 30th: PPMC’s future uncertain!
ISLAMABAD: The future of the Power Planning and Monitoring Company (PPMC) is reportedly hanging in the balance, as the Committee on Rightsizing of the Federal Government has approved its continuation only until September 30, 2026, well-informed sources in PPMC told Business Recorder.
The development comes at a time when PPMC is facing criticism for hiring human resources on what critics describe as exorbitant salary packages. These costs are being paid by distribution companies (DISCOs), which ultimately pass them on to consumers through tariffs. The issue of PPMC’s compensation structure has also surfaced during public hearings at the National Electric Power Regulatory Authority (NEPRA), which stated that it has not approved any fee for the entity.
According to the Rightsizing Committee, PPMC is the renamed and restructured version of the Pakistan Electric Power Company (PEPCO), originally established in 1998 to facilitate the corporatization of the power sector following its unbundling from WAPDA. In 2021, PEPCO was restructured and rebranded as PPMC as part of broader sector reforms.
The reduction in workforce from 530 to 143 employees was carried out during PEPCO’s restructuring, reflecting its reduced operational requirements. However, the Committee believes there is further room for downsizing in light of ongoing reforms in the power sector.
The PPMC’s core responsibilities include assisting the Power Division in monitoring and overseeing DISCOs, as well as supervising generation companies (GENCOs) and the National Transmission and Despatch Company (NTDC).
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The Committee noted that, given the legal and operational independence of DISCO boards, PPMC’s ability to directly influence their performance has become limited. It suggested that a more effective approach would be to place PPMC experts directly on the boards or management of DISCOs to help drive performance improvements.
The Committee also questioned the continued need for around 150 employees and an annual budget of approximately Rs 1.5 billion, particularly in view of the ongoing privatization or shutdown of GENCOs and the restructuring of NTDC.
Nevertheless, recognizing the need for technical expertise during ongoing power sector reforms, the Committee recommended maintaining PPMC at its current size and scale for one year, followed by its restructuring into a leaner entity.
During this period, the Power Division has been tasked with developing a new operating model for PPMC, including a reduced headcount and budget, and submitting a restructuring roadmap and timeline by August 30, 2026.
The Power Division, however, has defended PPMC’s continued existence, arguing that it is the designated entity responsible for implementing the National Electricity Plan (NE-Plan) 2023–2027 and ensuring alignment with the Council of Common Interests (CCI)-approved National Electricity Policy 2021.
According to the Power Division, PPMC has already undergone significant rightsizing, reducing its workforce by 73 percent—from 530 to 143 employees—while maintaining operational effectiveness.
Officials further maintained that PPMC does not impose any financial burden on the federal government’s consolidated budget, as its revenue is generated through its own operations and contributions from DISCOs. Its main income sources include inspection and testing services, as well as management fees derived from DISCO revenues.
“Without PPMC, critical policy development, implementation of the National Electricity Policy and National Electricity Plan 2023–2027, and sector monitoring functions would be severely compromised, creating gaps in energy planning, sectoral reforms, and regulatory oversight,” sources quoted the Power Division as saying.
The Power Division acknowledged that PPMC’s performance has been “mediocre,” but emphasized that the company remains a central pillar in the government’s power sector reform agenda and plays a key role in facilitating market-based human resource capacity.
Copyright Business Recorder, 2026