Senate panel questions proposed privatisation of power distribution cos
ISLAMABAD: A Senate panel on Tuesday questioned the proposed privatisation of power distribution companies, noting the high recovery rates of major DISCOs and recommending that the matter be placed before the Council of Common Interests (CCI) afresh.
The Sub-Committee of the Senate Functional Committee on Devolution, chaired by Zamir Hussain Ghumro, observed that the federal government was proceeding with the privatisation of distribution companies under its jurisdiction despite recovery rates of 100 per cent in Islamabad, 98pc in Faisalabad and 99pc in Lahore.
The committee was informed that the issue had previously been considered by the CCI in 2011.
Ghumro questioned the relevance of that decision, while Senator Jan Muhammad Buledi pointed out that the CCI had been reconstituted several times since then.
The panel recommended that the proposed privatisation be referred to the CCI for fresh consideration and an appropriate decision, saying power distribution should be dealt with within the constitutional framework of devolution.
Citing Article 157 of the Constitution, Ghumro said provincial governments had powers relating to electricity distribution within their respective provinces, including matters concerning tariffs, consumption taxes and the establishment of power houses and grid stations.
The committee also took strong exception to the continued existence of 24 federal ministries and institutions dealing with subjects devolved to the provinces under the 18th Constitutional Amendment.
It unanimously rejected the Cabinet Division’s argument that the bodies were required for coordination and international commitments, saying the justification had already been rejected at its previous meeting.
Ghumro said retaining the 24 ministries and institutions at the federal level was a financial burden, citing federal government expenditure of around Rs19 trillion against total tax and non-tax revenue of about Rs20 trillion.
He directed the Cabinet Division to bring the matter to Prime Minister Shehbaz Sharif’s notice and submit a fresh compliance report.
The committee said only ministries dealing with genuinely federal responsibilities should remain at the Centre and sought compliance within two weeks.
The panel also directed the Establishment Division to transfer police-related service matters to the provinces, observing that police had become an exclusively provincial subject after the relevant entry was omitted from the Concurrent Legislative List.
It further pressed for implementation of provincial rights under Article 172(3), particularly the provinces’ equal and joint ownership of mineral oil and natural gas.
The committee took serious exception to the reported failure to seek provincial nominations for the board of directors of Pakistan Petroleum Ltd (PPL), describing the move as a possible breach of privilege.
Meanwhile, the committee was briefed that six Thar coal-based power plants were operational. Four were running entirely on Thar coal, while the other two were using Thar coal for 33pc and 20pc of their fuel requirements, respectively.
Copyright Business Recorder, 2026