CCoP approves restructuring plan for FESCO, GEPCO and IESCO

According to Business Recorder, the Cabinet Committee on Privatisation (CCoP) has cleared a restructuring scheme for FESCO, GEPCO and IESCO, which form the initial group of electricity distributors. The scheme is part of a broader overhaul of the power sector. Its stated aims are financial sustainability, professional management, digital capability and a sharper focus on consumers.

Under the arrangement, certain land parcels and liabilities, including retirement dues owed to employees who have already retired, along with the associated funds, will move to a government-owned special purpose vehicle. Benefits for serving staff will stay with each distribution company. Reciprocal dues between government bodies will be offset to clear amounts owed to the government, the Privatisation Commission said. The commission described the plan as fiscally neutral, saying it is meant to add value for the government while keeping future transactions viable.

Muhammad Ali, the prime minister's adviser on privatisation, said consumers stay protected, since power rates will still be determined under the National Electric Power Regulatory Authority process and announced by the government. He said the reform aims for measurable gains in reliability, efficiency and customer service across the three companies, which together serve more than 14 million consumers.