During a session of the National Assembly’s Standing Committee on Energy, the Power Secretary revealed that there is a push to transfer the interest on the circular debt to the public.
Payments to Independent Power Producers (IPPs) are also expected to be shouldered by the public, and the IMF is not cooperating with the government’s requests. K-Electric is currently producing the highest-cost electricity.
Chaired by MNA Muhammad Idrees, the committee was informed that three power distribution companies, IESCO, GEPCO, and FESCO, are ready for privatisation in the first phase, which will not burden the government financially.
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The Power Division officials noted that NEPRA has allowed an 11% loss margin, although the global standard is 7%. Whoever buys the DISCOs will inherit these losses, with Punjab companies alone losing 150 billion rupees.
The current government plans to implement Imran Khan’s formula for managing IPPs. The Power Secretary also mentioned a reduction in federal ministries and departments, with DISCOs being privatised first, followed by a reduction in the load on other ministries and departments by the Cabinet Committee.
