Privatisation of power distribution companies delayed until year-end

ISLAMABAD: The government has informed the International Monetary Fund (IMF) that the privatisation of power distribution companies (DISCOs) will be postponed until the end of the year, according to a report by The Express Tribune.

The delay comes as key reforms required for the privatisation process have yet to be implemented. The government had previously planned to move forward with the privatisation of these companies, but progress has been hindered by the need to complete necessary reforms within the power sector.

The Express Tribune reported that the government communicated this revised timeline to the IMF, explaining that the process would not be completed before the end of the current year. The privatisation of DISCOs is a significant component of the broader reform agenda agreed upon with the IMF, aimed at improving efficiency and reducing losses in the power sector.

The delay is attributed to the ongoing implementation of reforms, which are considered essential prerequisites for the successful privatisation of the distribution companies. The government has not provided a specific new date for the completion of the process, but has indicated that it will not occur before the year’s end.

The privatisation of DISCOs has been a longstanding objective as part of efforts to address chronic issues within Pakistan’s energy sector, including financial losses and inefficiencies. The government’s commitment to these reforms is closely monitored by international lenders, including the IMF, as part of broader economic restructuring initiatives.

Further updates on the timeline and progress of the privatisation process are expected as the government continues to work on implementing the required reforms.