Senate Standing Committee on Privatization reviews key issues affecting major power companies & PIACL

ISLAMABAD, Oct 03 (SABAH): The meeting of the Senate Standing Committee on Privatization chaired by Senator Muhammad Tallal Badar convened today at OLD PIPS Hall, Parliament Lodges. 

In attendance were Senator Khalida Ateeb, Senator Jam Saifullah Khan, Senator Umer Farooq,  Senator Khalil Tahir, Senator Mohsin Aziz, the Secretary of Privatization, and the senior officials from the Power Division and concerned departments.

Chairman Senator Muhammad Tallal Badar expressed dissatisfaction over the absence of the Minister at the meeting that reviewed crucial aspects related to major power companies and the privatization of Pakistan International Airlines Corporation Limited (PIACL).

During the briefing by the Ministry of Energy (Power Division) on the proposed privatization of electricity distribution companies (DISCOS), Chairman Muhammad Tallal Badar inquired about the failure to privatize Faisalabad Electric Supply Company (FESCO), questioning why the process was unsuccessful. He mentioned hearing that FESCO had reached its final stage of privatization around 2016-2017, yet it was not finalized. 

He further asked what factors contributed to the privatization not being completed and raised concerns about the reasoning provided regarding labor at that time. The representative from the Ministry of Power emphasized that employee concerns have become a significant obstacle in the privatization process. 

The Committee Chairman inquired about the pending World Bank report and its expected completion date, and it was stated that the report would be finalized within 20 to 25 days. He recommended that the final report be shared with the Committee upon completion. Senator Muhammad Tallal Badar also inquired about the full details of FESCO and PESCO, expressing dismay over the current state of both companies. 

He noted that, given the present circumstances, no one would be interested in acquiring the companies if the situation remains unchanged. He urged the authorities to review the board’s performance and identify the factors that led to this condition. Additionally, he questioned whether the privatization was intended to resolve existing issues, address the companies’ financial decline, or was driven by labor concerns, all of which should have been thoroughly discussed with the Committee.

Regarding the details of expenditures incurred during the privatization of electricity distribution companies (DISCOS), the Power Division consultant reported that approximately 250 million has been spent. Senator Muhammad Tallal Badar lamented that in a state where 250 million are involved, and failures have occurred in one of the major institutions in Pakistan, what kind of perception does this create in the world? 

Additionally, the Committee unanimously agreed to hold a joint meeting of the Senate Standing Committee on Power and the Senate Standing Committee on Privatization to further examine the details and shortcomings of the aforementioned companies.

Moreover, regarding the ongoing privatization of Pakistan International Airlines Corporation Limited (PIACL), Senator Muhammad Tallal Badar emphasized that the Committee’s primary concern is receiving further updates on the privatization transaction, stressing that delays and failure to execute the transaction create complications for the country.

The Secretary of Privatization added that the timeline depends on the evaluation and terms, as some bidders are seeking more, and negotiations are still underway. Additionally, there is the issue of legacy liabilities. The Chair directed the Secretary of Privatization to finalize the process by 31st October, emphasizing that Pakistan’s future depends on it. The Chairman also expressed optimism that the privatization efforts by PIACL will yield positive results.