Special Report
ISLAMABAD: Prime Minister Shehbaz Sharif has constituted an 11 members committee to look into the matter of transfer of power distribution companies (DISCOs) to the provincial governments, it was reliably learnt on Sunday.
Sources privy the development informed that the government is considering the transfer of DISCOs to the provinces and for this the Prime Minister has constituted a committee. They said that this committee will present its recommendations for perusal/order of the Prime Minister within 10 days. They said the committee is comprised of Khawaja Muhammad Asif, Minister for Defence (Chair), Khurram Dastgir Khan, Minister for Power, Syed Naveed Qamar, Minister for Commerce, Musadik Masood Malik, Minister of State for Petroleum, Provincial Chief Ministers/Minister nominated by CMs, Dr. Muhammad Jehanzeb Khan, Special Assistant to the Prime Minister on Government Effectiveness, Finance Secretary, Secretary Power (Secretary of the Committee), Secretary Privatization Commission, Secretary Law & Justice, Provincial Chief Secretaries. The Committee may co-opt member(s) from regulatory bodies (National Electric Power Regulatory Authority (NEPRA), Securities & Exchange Commission of Pakistan (SECP), Competition Commission of Pakistan (CCP) etc) for input required, if any, on any regulatory aspect, said sources.
As per sources, the Terms of Reference (ToR) of the committee include that this committee shall examine the current constitutional framework for transfer of DISCOs from federal government to respective provincial governments. Similarly, the committee shall chalk-out the list of legal requirements that have to be complied, if needed, suggest a legal framework specific for the purpose. Likewise, the committee shall examine requirements of NEPRA with regard to the change of ownership of its licensees (DISCOs) and the steps involved therein. Moreover, the committee shall examine regulatory requirements of other regulators including SECP, SBP, CCP and outline the compliances required therein for transfer of ownership of equity.
As per sources, the committee shall draft intent, principles and scope of the Framework Agreement to be signed between the federal government and provincial governments putting mechanism for the transfer of DISCOs to the respective provincial governments. The committee shall recommend the principles and parameters of transfer through an agreed transitional plan eventually leading to full provincial responsibility for the sustainable financial functioning of the DISCOs. Pursuant to National Electricity Policy 2021, highlighting the contents of the strategic roadmap for DISCOs along with district responsibilities of respective governments, sources added.
