DESPITE bitter experiences of the past, the Government is proceeding with the process of privatization of power distribution companies aiming to sell all of them except Quetta Electric Supply Company (QESCO) by December 2027. An assurance in this regard has reportedly been given to the International Monetary Fund (IMF). The Government will retain past liabilities and a decision has been taken to maintain the same electricity prices across the country.
We have been pointing out in these columns, time and again, that there was absolutely no justification for privatization of viable and profit earning state enterprises except to favour some blue eyed elements who will share profits and enjoy hefty perks. Privatization process so far undertaken does not substantiate claims of any worthwhile improvement in the financial health of these organizations or any relief to consumers. It is said that 10 power distribution companies caused Rs.299 billion in losses and another Rs.551 billion was given in subsidies during fiscal year 2025. However, intriguingly, QESCO, which alone caused Rs.112 billion losses and consumed another Rs.54 billion in subsidy in the last fiscal year, is not part of the privatization plan. It is also unjust to keep prices of electricity the same all over the country irrespective of differing levels of efficiency, recovery and losses/thefts. Honest consumers must not be penalized for inefficiency of the management and its inability to plug losses/thefts. This raises doubts about any prospects of relief for consumers even if the private management succeeds in improving performance and generating additional income.
