ISLAMABAD, Aug 28 (APP):Minister of Energy (Power Division), Sardar Awais Ahmad Khan Leghari, said on Wednesday that the government, in collaboration with the Privatization Commission, is moving forward with the privatization of DISCOs.
Talking to a private news channel, he said that the first batch of Distribution Companies (DISCOs) will have their Expression of Interest (EOI) published in April 2025. He said that final transactions were expected to be completed within 3-6 months thereafter.
The minister also revealed plans to follow the Turkish model for the DISCOs that are currently incurring losses.
These companies will enter into concession agreements ranging from 20 to 25 years, which will include investment obligations and improvement requirements.
The ultimate goal is to enhance these companies’ performance so that their shares can be sold at a later stage, he said.
The minister identified high interest rates and the devaluation of the rupee as the primary reasons for the current high electricity rates.
He also mentioned plans to negotiate with Independent Power Producers (IPPs) to reduce electricity prices wherever possible, based on mutually agreed terms.
The minister also outlined plans to reprofile debt, shift from imported coal to local coal, and eliminate line losses, which could result in a reduction of approximately 7 rupees per unit.
Additionally, by closing older power generation plants, the government aims to eliminate capacity payments, potentially reducing the burden by 66 paisa per unit.
The minister said that the government was committed to bring unprecedented reforms to the energy sectors that are already underway.
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