Key Takeaways
- The Privatization Division has confirmed no fresh approval from the Council of Common Interests is required for the privatization of nine power distribution companies.
- A Senate subcommittee has raised concerns, directing officials to review the constitutional and legal position.
- Committee Chairman Zamir Hussain Ghumro warned of parliamentary action if the government does not comply with its directions.
The Privatization Division has informed a Senate subcommittee that no additional approval from the Council of Common Interests (CCI) is necessary for the privatization of nine power distribution companies (DISCOs).
This decision is based on a 2011 CCI approval and the National Electricity Policy, which was approved by the CCI on June 21, 2021, allowing for privatization to improve the efficiency of state-owned entities.
In a letter dated September 25, 2026, the Law Division reaffirmed the validity of the 2011 CCI decision, stating that fresh approval is not required for the privatization of DISCOs.
However, the Senate subcommittee, chaired by Zamir Hussain Ghumro, has expressed significant concerns, particularly regarding the privatization of entities performing functions that fall within provincial jurisdiction.
Ghumro directed officials to review the constitutional and legal position, emphasizing that matters involving provincial responsibilities should be placed before the CCI, as per earlier directions.
The committee has also expressed reservations about the Privatisation Commission’s response, accusing it of attempting to push ahead with the process without fresh CCI approval.
Ghumro warned that failure to comply with the committee’s directions could lead to parliamentary action, including the consideration of a privilege motion.
The Privatisation Commission’s report on the proposed sale of the distribution companies has been under review, with the committee maintaining that the process should not proceed without provincial consent.
The government’s decision to bypass provincial consent has sparked debate over the balance between central and provincial governance in the privatization process.
