From Dawn · Amin Ahmed · · 2m
Lawmakers, Govt Differ Over Discos Privatisation
Senate panel and government clash over Discos privatisation needing CCI approval.
In brief
Senate panel and government clash over Discos privatisation needing CCI approval. Senate panel insists Discos privatisation requires CCI approval while government claims 2011 CCI decisions and National Electricity Policy 2021 allow privatisation without new approval. Originally reported by Dawn.
Senate panel claims CCI approval needed
Senate panel maintains Discos privatisation falls constitutionally within Council of Common Interests jurisdiction.
“The Senate panel maintained that the matter constitutionally fell within the domain of the Council of Common Interests (CCI)”
Government insists no new CCI approval required
Prime Minister's privatisation adviser Muhammad Ali states no fresh CCI approval needed for Discos privatisation.
“Adviser to the Prime Minister on Privatisation Muhammad Ali told a subcommittee of the Senate Functional Committee on Devolution that no new CCI approval was needed for the privatisation of Discos”
Discos caused over $30bn losses
Discos companies reported losses exceeding $30 billion over 15 years since 2011.
“He added that the companies had caused losses of more than $30 billion over the past 15 years”
2011 CCI approved three power generation companies
CCI approved privatisation of three power generation companies and nine distribution companies in 2011.
“He said the CCI had approved the privatisation of three power generation companies and nine distribution companies in 2011”
2021 National Electricity Policy recommended privatisation
National Electricity Policy 2021 recommended exploring privatisation options for state-owned entities.
“It also approved the National Electricity Policy on June 21, 2021, which recommended that the government explore various privatisation options to improve the efficiency of state-owned entities where applicable”
Law division confirms no fresh CCI approval needed
Law division reconfirmed in Sept 2026 that no fresh CCI approval required for Discos privatisation.
“On the validity of the decisions, the law division, in a Sept 25, 2026 letter, reconfirmed that in light of the 2011 CCI decision, fresh approval was not required for the privatisation of Discos”
Privatisation division maintains no approval needed
Privatisation division states no fresh CCI approval needed due to 2011 decision and 2021 policy.
“Accordingly, the privatisation division maintained that no fresh CCI approval was required in light of the 2011 decision and the 2021 National Electricity Policy”
Legal requirements for privatisation fulfilled
Legal and procedural requirements for privatisation process have been completed.
“He said the legal and procedural requirements for the privatisation process had been fulfilled”
National Electricity Policy 2021 formulated after provincial consultation
National Electricity Policy 2021 formulated after obtaining recommendations from provinces.
“He said the National Electricity Policy 2021 had been formulated after obtaining recommendations from the provinces and that the privatisation programme had subsequently been approved”
Referring to CCI could cause delays
Referring privatisation back to CCI could cause significant delays and affect investor confidence.
“Referring the matter back to the CCI at this stage could cause significant delays, affect investor confidence and adversely impact the financial position of power distribution companies”
Senator Ghumro questions constitutional distribution of powers
Senator Ghumro questions whether privatisation aligns with constitutional distribution of powers under Article 157.
“Senator Zamir Hussain Ghumro emphasised that the constitutional position and role of the CCI could not be overlooked. He questioned whether the proposed privatisation was consistent with the constitutional distribution of powers under Article 157”
Provincial interests require transparency
Provincial interests require transparency and protection through CCI review.
“Referring to previous judicial decisions and privatisation initiatives, he stressed the importance of transparency and protecting provincial interests, and asked authorities to provide relevant decisions and supporting documents for examination”
CCI took 11 relevant decisions
CCI has taken 11 relevant decisions with no formal provincial reservations.
“Officials informed the committee that the CCI had taken 11 relevant decisions and that, according to available record, no province had formally recorded reservations”
Federal spending on provincial subjects concerns
Federal government spent Rs2.6 trillion on provincial subjects over 16 years.
“The chairman observed that despite 16 years since the 18th Amendment, concerns persisted regarding federal expenditure on devolved subjects, including education and health, which had been notified as provincial matters by the Implementation Commission”
Rs2.6tr federal spending on provincial subjects
Federal government spent Rs2.6 trillion on health and education ministries over 16 years.
“He questioned the authorisation and constitutional basis for expenditure of approximately Rs2.6 trillion on the health and education ministries over the past 16 years”
Federal spending misuse of taxpayers' money
Federal spending on provincial subjects constitutes misuse of taxpayers' money.
“He termed the expenditure of Rs2.6tr by the federal government on the two ministries, which he said had been de-notified in 2010, a misuse of taxpayers’ money”
Expenditure could rise to several trillions
Expenditure on provincial subjects could rise to several trillions of rupees.
“He said the amount could rise to several trillion rupees once expenditure on other ministries created for provincial subjects was included”
Parliament authorises public expenditure
Parliament is primary authority for authorising public expenditure.
“Mr Ghumro expressed concern that the details sought by the committee had not been submitted within the stipulated timeframe and stressed that parliament was the primary authority for authorising public expenditure”
The headline
Senate panel insists Discos privatisation requires CCI approval while government claims 2011 CCI decisions and National Electricity Policy 2021 allow privatisation without new approval.
