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Senate panel questions proposed privatisation of power distribution cos

Business Recorder • • 1 min read

Senate panel questions proposed privatisation of power distribution cos

According to Business Recorder, a Senate sub-committee on devolution has questioned plans to privatise power distribution companies. The panel wants the Council of Common Interests to revisit the proposal, saying power distribution belongs within the constitutional devolution framework. Chair Zamir Hussain Ghumro cited Article 157, which gives provinces power over electricity distribution within their borders.

Islamabad posted full recovery, while Faisalabad and Lahore reached 98pc and 99pc, yet the federal government pressed ahead with the privatisation. The panel unanimously rejected the Cabinet Division's case that 24 federal ministries and institutions were needed for coordination and overseas commitments. Calling those bodies a financial burden, Ghumro pointed to federal spending of around Rs19 trillion against about Rs20 trillion in taxes and non-tax income. Ghumro asked the Cabinet Division to raise the matter with Prime Minister Shehbaz Sharif and file a fresh compliance report within two weeks.

The panel also asked the Establishment Division to move police service matters to the provinces. It further urged that Article 172(3) be applied, giving provinces an equal and joint stake in oil and natural gas. Pakistan Petroleum Ltd (PPL) drew criticism for reportedly not seeking provincial nominees for its board, which the committee called a possible privilege breach. Separately, the panel heard that six Thar coal-based plants are operating, four fully on that fuel while two use it for 33pc and 20pc of their fuel needs.

At a glance

  • Senate sub-committee questioned the planned privatisation of power distribution companies.
  • The panel asked for the matter to go back to the Council of Common Interests.
  • Islamabad recovery reached 100 per cent, while Faisalabad and Lahore recorded 98pc and 99pc.
Sectors:Power Generation & DistributionOil & Gas Exploration Companies

Originally reported by Business Recorder

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