PM Shehbaz Pushes Faster Privatization of DISCOs and GENCOs

Prime Minister Shehbaz Sharif has directed authorities to accelerate the privatization of electricity distribution and generation companies, saying a competitive power market is the only long-term solution to Pakistan’s energy challenges. Chairing a review meeting on power sector reforms in Islamabad, the prime minister stressed that privatization of distribution companies (DISCOs) and generation companies (GENCOs) must move forward without delay. He said improving efficiency and competition in the power sector was critical for economic stability. According to the Prime Minister’s Office, PM Shehbaz also instructed that projects aimed at strengthening the electricity transmission system be completed on a priority basis. He further directed that work on Battery Energy Storage Systems be launched through public-private partnerships, with strong private sector participation. The meeting was informed that steps are underway to privatize three power distribution companies: Islamabad Electric Supply Company, Faisalabad Electric Supply Company and Gujranwala Electric Power Company. Expressions of interest for these entities are expected to be issued soon. Officials also briefed the prime minister on progress in power generation, transmission upgrades and market reforms. The PC-1 for the 500 KV Ghazi Barotha–Faisalabad transmission line is currently in the approval stage, aimed at strengthening the national grid. The forum was told that technical feasibility for converting power plants from imported coal to Thar coal has been completed, while work is ongoing on a railway line to transport Thar coal to these plants. The meeting also reviewed the operationalisation of a competitive electricity market. It was shared that line losses have declined compared to last year, while the concept clearance for the Battery Energy Storage System project has been approved and its feasibility study is currently in progress