Prime Minister Muhammad Shahbaz Sharif has issued strict instructions to give priority to the interests of consumers in the matter of privatization of discos. Addressing a high-level review meeting on power sector reforms and privatization, he clarified that an effective and comprehensive strategy should be adopted to make the privatization process transparent and attract world-class investors. The main objective of the government is to reduce the burden of circular debt and to relieve common Pakistani consumers from additional bill deductions.

Appointment of experts in Privatization Commission

In order to carry out this complex process efficiently, the Prime Minister has directed to develop the workforce of the Privatization Commission on modern lines. He ordered that world-class financial, legal and information technology experts be immediately inducted into the commission. These experts will handle the international bidding process, asset valuation and regulatory issues in a transparent manner to maximize the benefit to the national exchequer.

  • Involvement of world class financial, legal and IT experts in Privatization Commission.
  • Transparent and competitive bidding structure to attract international investors.
  • Stricter clauses ensuring consumer protection in privatization contracts.

Protection of consumer rights

Consumers across the country, including Islamabad, Lahore, Karachi, are suffering from severe financial problems due to expensive electricity, and there is a fear among the public that the tariff may not increase further after going into private custody. The Prime Minister has convinced the concerned authorities that such safeguards must be included in the privatization agreements that do not allow the rights of consumers to be affected. Nepra and other regulatory bodies will be obliged to monitor service quality even after privatization.

What you should do

As a typical electricity consumer, you don't need to take any new steps regarding your monthly bills or connection right now. However, keep an eye on the public announcements and tariff related news issued by the Ministry of Energy and Privatization Commission. Stay aware of the performance and grievance redressal system of your respective Electricity Distribution Company (DISCO) during this period of transition.

What to watch next

The business community and economists should now wait for the advertisement and timeline for the appointment of International Financial Advisors by the Privatization Commission. The next major step will be the issuance of a formal invitation for Expression of Interest (EOI) for the first phase privatization of DISCOS. Once approved by the Cabinet, it will be clear which companies will be handed over to the private sector first in the coming months.