Hesco, Pesco and Fesco: PD tasked with completing sell-off homework by Q2
The 8th meeting of the Standing Committee on Privatisation was held under the Chairmanship Muhammad Farooq Sattar here in the Ministry of Privatization.
The chairman Privatization Commission informed the committee that for privatisation of Hesco, Pesco and Fesco, terms and conditions for privatisation are under consideration and financial adviser for due diligence will be hired, audit and accounts will be maintained and Power Division has given time till September/October 2025.
KE asks Power Div for consultation on NEP
He also informed the committee that privatisation process will be started by end of May.
The committee expressed serious reservations on appointing board of governors of power companies and recommended that competency must be observed while appointing boards.
The committee also directed that CEO's must attend the next meeting in person. The representative of Postal Life Insurance Company Limited (PLICL) informed the committee that the company have about 0.3 million customers and they have demanded rupees eight billion from the Ministry of Finance this year. The committee directed that last 4-5 years figures must be provided and the policy holders must be protected. Ministry of Finance should clarify the status of funds of PLICL.
The representative of Utility Stores Corporation (USC) briefed the committee on the implementation status of the recommendations of the previous meeting. He briefed the committee about details of subsidies provided, profit earned and tax paid. He also briefed the committee about the (USC) network and number of employees. He informed the committee that under the restructuring plan of USC, 1203 Utility Stores have been closed and 2,237 employees have been laid off till date. He informed that only 1,500 stores will be functional on commercial basis. The committee inquired that if Utility Stores Corporation is shifted on commercial basis and earns profit then what is the justification to prioritise it. The representative of Ministry of Privatisation replied to the committee that a presentation on it will be given to the committee in the next meeting. He stated that it depends on policy decision by the government and profitable entities may also be privatised. The committee recommended that the decision of USC privatisation must be reviewed in the larger interest of the country and a large number of employees and their families.
The committee also considered, 'The Privatization Commission (Amendment) Bill, 2024' (government bill). The representatives of the Ministry of Law briefed the committee on the bill but the committee directed him to present any precedent, the representatives from the Ministry of Law assured the committee that the precedent will be provided in the next meeting of the committee so the committee pended the bill till its next meeting.
While discussion on privatisation of Pakistan Engineering Company (PECO) requested the committee to provide more time to resolve the issue. The committee gave the time of three months and directed to resolve the issue within due time and recommended that chairman and MD must be appointed from majority of shareholding instead of government nominees. The committee also considered the report of Sub-Committee appointed under convenorship of Sehar Kamran, MNA on decline of PIACL. Sehar Kamran briefed the committee on the report of the Sub-Committee. The Committee pended discussion on the report till its next meeting.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
3 hours ago
- Express Tribune
NEPRA mulls Rs1.80/unit power tariff cut
The Power Division has urged Nepra to align KE's tariff structure with national standards to ensure fairness, transparency and affordability. photo: file The National Electric Power Regulatory Authority (NEPRA) has indicated a possible reduction of Rs1.80 per unit in electricity prices under the Quarterly Tariff Adjustment (QTA) for the quarter ending June 2025. The proposed relief, if approved, could provide consumers across Pakistan with financial relief amounting to Rs53.393 billion. The proposal was discussed during a public hearing held at NEPRA headquarters on Monday, where representatives from the Central Power Purchasing Agency (CPPA-G), distribution companies (DISCOs), business community, media, and general consumers presented their views. The request was submitted by CPPA-G on behalf of ex-WAPDA DISCOs to refund the surplus funds under QTA for the April-June 2025 quarter. NEPRA was informed that the main driver of the proposed relief is a significant decrease in capacity payments by Rs53.714 billion. Additionally, improved efficiency in transmission and distribution (T&D) led to a further reduction of Rs662 million. However, these savings were partially offset by slight increases in Operation & Maintenance (O&M) costs and Use of System Charges and Market Operation Fees (UoSC & MoF), which went up by Rs182 million and Rs804 million respectively. During the proceedings, NEPRA officials were also briefed on the status of the power sector's circular debt. According to Power Division officials, the circular debt has declined by Rs780 billion over the past fiscal year, falling from Rs2,300 billion to Rs1,600 billion. This improvement was attributed to better DISCO performance, which contributed to Rs200 billion in savings. However, the closure of the Neelum-Jhelum Hydropower Plant adversely impacted the sector by Rs18 billion. Officials highlighted that electricity consumption among DISCOs increased by an average of 31%, with the exception of Quetta Electric Supply Company (QESCO), which reported a decline in sales. NEPRA officials raised concerns over the reported growth in industrial consumption, but none of the DISCOs' CEOs could provide satisfactory explanations. The government, officials said, is currently working on reforms to both direct and cross subsidies. They also clarified that the Rs1,275 billion raised through bank loans to manage power sector liabilities would not require any separate surcharge for repayment. If NEPRA approves the proposed adjustment, the relief will be applicable to all DISCO consumers, including those served by K-Electric, except lifeline users, prepaid meter holders, and electric vehicle (EV) charging stations. This aligns with the federal government's policy of maintaining a uniform power tariff nationwide. Among the DISCOs, Faisalabad Electric Supply Company (FESCO), Lahore Electric Supply Company (LESCO), and Multan Electric Power Company (MEPCO) requested the highest refunds at Rs15.03 billion, Rs12.64 billion, and Rs8.47 billion, respectively. In contrast, QESCO sought a positive adjustment of Rs3.594 billion due to higher capacity payments and operational costs, reducing the total refund amount from Rs56.987 billion to Rs53.393 billion. For context, NEPRA had allowed a recovery of Rs1.7432 per unit, or Rs43.23 billion, in QTA during the same quarter of FY2023-24. NEPRA stated that a final decision will be issued after further scrutiny of the data submitted. If approved, the adjustment would provide much-needed relief to consumers struggling with high inflation and increased cost of living.
Business Recorder
20 hours ago
- Business Recorder
G2G agreement: Pakistan govt plans to offer solar projects to Saudi firm
ISLAMABAD: Pakistan government has reportedly included two large-scale solar power projects, totalling 2,800 MW, in the Indicative Generation Capacity Expansion Plan (IGCEP) 2025-35, which may be offered to Saudi energy company M/s ACWA Power under a proposed Government-to-Government (G2G) agreement. According to sources, the National Grid Company of Pakistan Limited (NGC), in a letter titled 'Land Acquisition for Solar Power Projects at Layyah, Jhang and Muzaffargarh', informed the Private Power and Infrastructure Board (PPIB) about the inclusion of these projects in the IGCEP. Shah Jahan Mirza, Managing Director of PPIB, has conveyed to the Power Division that the draft IGCEP—currently under finalization—includes various scenario analyses by the System Operator (ISMO). Among them are two specific solar PV development scenarios proposing 1,000 MW and 1,800 MW capacity additions, earmarked for potential development by ACWA Power. Saudi firm keen to invest in renewable energy sector However, he emphasized that the offer to the Saudi side would depend on the approval of these scenarios by NEPRA. Mirza also advised the Power Division not to de-notify the land identified for these solar PV projects until the IGCEP is formally approved. The project's future had earlier appeared uncertain. In November 2023, Pakistan's Ambassador to Saudi Arabia reported that ACWA Power had declined to sign any agreement with Islamabad, citing security concerns. However, a shift in momentum was seen after a delegation of Saudi investors—including ACWA representatives—visited Pakistan and held talks with the Special Investment Facilitation Council (SIFC). Since then, Pakistan's embassy in Riyadh has remained in contact with the company. Despite renewed interest, hurdles remain. Saudi authorities have expressed concerns over the treatment of M/s Al-Jomaih, a Saudi investor involved with K-Electric. These concerns, officials said, have made Saudi investors cautious about engaging in new ventures in Pakistan. The Al-Jomaih issue is now being handled by Deputy Prime Minister Senator Ishaq Dar. The inclusion of these solar projects in the IGCEP signals the government's ongoing efforts to diversify its energy mix and attract foreign investment in renewable energy—though political and regulatory assurances remain critical to securing such high-value deals, the sources said. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
G2G agreement: Govt plans to offer solar projects to Saudi firm
ISLAMABAD: The government has reportedly included two large-scale solar power projects, totalling 2,800 MW, in the Indicative Generation Capacity Expansion Plan (IGCEP) 2025-35, which may be offered to Saudi energy company M/s ACWA Power under a proposed Government-to-Government (G2G) agreement. According to sources, the National Grid Company of Pakistan Limited (NGC), in a letter titled 'Land Acquisition for Solar Power Projects at Layyah, Jhang and Muzaffargarh', informed the Private Power and Infrastructure Board (PPIB) about the inclusion of these projects in the IGCEP. Shah Jahan Mirza, Managing Director of PPIB, has conveyed to the Power Division that the draft IGCEP—currently under finalization—includes various scenario analyses by the System Operator (ISMO). Among them are two specific solar PV development scenarios proposing 1,000 MW and 1,800 MW capacity additions, earmarked for potential development by ACWA Power. Saudi firm keen to invest in renewable energy sector However, he emphasized that the offer to the Saudi side would depend on the approval of these scenarios by NEPRA. Mirza also advised the Power Division not to de-notify the land identified for these solar PV projects until the IGCEP is formally approved. The project's future had earlier appeared uncertain. In November 2023, Pakistan's Ambassador to Saudi Arabia reported that ACWA Power had declined to sign any agreement with Islamabad, citing security concerns. However, a shift in momentum was seen after a delegation of Saudi investors—including ACWA representatives—visited Pakistan and held talks with the Special Investment Facilitation Council (SIFC). Since then, Pakistan's embassy in Riyadh has remained in contact with the company. Despite renewed interest, hurdles remain. Saudi authorities have expressed concerns over the treatment of M/s Al-Jomaih, a Saudi investor involved with K-Electric. These concerns, officials said, have made Saudi investors cautious about engaging in new ventures in Pakistan. The Al-Jomaih issue is now being handled by Deputy Prime Minister Senator Ishaq Dar. The inclusion of these solar projects in the IGCEP signals the government's ongoing efforts to diversify its energy mix and attract foreign investment in renewable energy—though political and regulatory assurances remain critical to securing such high-value deals, the sources said. Copyright Business Recorder, 2025
