No fresh approval required for Discos’ privatisation

ISLAMABAD: The Privatisation Division submitted to the Senate Sub Committee of the Functional Committee on Devolution that the Council of Common Interests (CCI) had already approved the privatisation of three generation companies (GENCOs) and nine distribution companies (Discos) in 2011 and no fresh approval is required to take forward the privatisation process.

According to Privatisation Commission, CCI granted approval dated 21 June 2021 of the National Electricity Policy (para 5.9.4) which provides that the government shall explore various options of privatisation to improve the efficiency of state-owned entities, where applicable; both decisions remain in the field.

On the validity of these decisions, the Privatisation Division said, the Law Division, in its letter dated 25 September 2026, re-confirmed that in light of the 2011 CCI decision, clarifying that fresh approval is not required for the privatisation of Discos.

Earlier, a Sub-Committee subsequently reviewed the report of the Privatisation Commission concerning the privatisation of DISCOs. The Chairman Zamir Hussain Ghumro expressed reservations regarding the continuation of the privatisation process in relation to matters falling within the provincial domain and directed the concerned authorities to review the constitutional and legal position.

The committee stressed that matters involving the provinces must be placed before the Council of Common Interests as directed The Chairman further directed the concerned authorities to reconsider the position communicated to the Committee and warned that failure to address the matter could lead to the Committee taking appropriate parliamentary action, including consideration of a privilege motion.

The chairman committee said Discos are performing provincial functions which either may be legalised by seeking approval provincial Assemblies or transferred to Provinces.

The Committee expressed reservations on the response of Privatisation Commission which wants to bulldoze the process avoiding fresh approval from CCI. Committee warned Privatisation Commission to comply with earlier direction of Committee or face action.

Copyright Business Recorder, 2026