Government authorizes the sale of four GENCOs and nine DISCOs.
ISLAMABAD: The federal government has authorized the phased privatization of nine power distribution companies (DISCOs) and four power generating companies (GENCOs), among other 13 organizations in the power sector.
Nine DISCOS and four GENCOs, or 13 power sector organizations, have had their privatization authorized by the federal government thus far, according to sources. According to them, the following commercial State Owned Enterprises (SOEs) are listed as being up for privatization: Jamshoro Power Company Limited (GENCO-I), Central Power Generation Company Limited (GENCO-II), Northern Power Generation Company Limited (GENCO-III), Lakhra Power Generation Company Limited (GENCO-IV), Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Sukkur Electric Power Company (SEPCO) and Hazara Electric Supply Company (HAZECO), Jamshoro Power Company Limited (GENCO-IV), Lahore Electric Supply Company (LESCO), Sukkur Electric Power Company (SEPCO), and Sukkur Electric Power Company (SEPCO).
According to their statement, the privatization will take place gradually, with the first phase concentrating on four DISCOs: FESCO, GEPCO, HESCO, and IESCO, and the second phase involving the privatization of MEPCO, PESCO, and other businesses.
According to sources, the Quetta Electric Supply Company (QESCO), Tribal Electric Supply Company (TESCO), National Transmission and Despatch Company (NTDC), and National Engineering Services Pakistan (Pvt) Limited (NESPAK) are among the four Power Division entities whose restructuring has been approved by the government.
According to the sources, comprehensive guidelines have been released about the privatization process, which attempts to increase efficiency and draw in private investment.
There will be stages to the privatization process. The privatization of four DISCOs—FESCO, GEPCO, HESCO, and IESCO—will be the main objective of the first phase. MEPCO, PESCO, and other businesses will be privatized in later stages. The goal of this calculated strategy is to avoid power supply interruptions and guarantee a seamless changeover.
In addition, the government has approved the reorganization of four Power Division organizations. Among them are National Transmission and Despatch Company (NTDC), Quetta Electric Supply Company (QESCO), Tribal Electric Supply Company (TESCO), and National Engineering Services Pakistan (Pvt) Limited (NESPAK). It is anticipated that this restructure would improve the electricity sector’s overall efficiency and further simplify operations.
The government’s intention to sell off all state-owned businesses was made public by Prime Minister Shehbaz Sharif in May, going beyond the original plan to sell off just the state-run businesses that were losing money.
Instead of actively participating in company operations, the prime minister underlined that the government’s job is to promote an atmosphere that is favorable to investment and enterprise. The government’s resolve to use the resources and experience of the private sector to resurrect the power industry and other state-owned businesses is demonstrated by this policy change.
It is important to note that the privatization and reorganization of these organizations are expected to increase operational efficiency, draw in a sizable amount of local and international investment, and eventually give customers access to a more dependable and affordable power supply. The phased strategy is intended to successfully manage the transition by making sure that every stage builds on the accomplishments of the one before it.