Pakistan’s Power Distribution Privatization Plan Faces Delay

Several International Monetary Fund (IMF) benchmarks linked to the privatization of Pakistan’s power distribution companies (DISCOs) remain incomplete, sources within the Ministry of Finance told ProPakistani. Officials confirmed that preparing a policy action plan for the privatization and transactions of power distribution companies is a key benchmark yet to be finalized. As of the latest economic review, out of the 22 structural benchmarks set by the IMF, five have yet to be fully implemented, according to sources. Additionally, the process of publishing the Corruption and Governance Diagnostic Assessment Report is still pending. The amendment to the State-Owned Enterprises (SOEs) Act has also not been completed, which is another critical component of the IMF’s requirements. The IMF has also demanded amendments in the Sovereign Wealth Fund law, which remain part of the unfulfilled benchmarks. In addition, Pakistan has yet to complete the redrafting of the Public Finance Management (PFM) Act, another critical IMF condition. Sources within the Finance Ministry acknowledged that meeting these structural reforms is crucial for Pakistan’s ongoing economic program and for unlocking further IMF support.