Energy Experts Rally Behind Privatization as Key to DISCOs Reform in Pakistan

In a pivotal consultation hosted by the Parliamentary Forum on Energy and Economy, industry leaders and policymakers converged to explore the future trajectory of Electricity Distribution Companies (DISCOs) in Pakistan. Central to the discussions was Ayaz Sadiq, Speaker of the National Assembly, who emphasized the critical nature of power tariffs—a global concern affecting nations in all parts of the world. Sadiq revisited the era of severe loadshedding that deterred investments in the energy sector, emphasizing that we must not regress to those challenging times. He further lamented that citizens, in many parts of the country, were paying for inefficiencies in a system they depend on but do not benefit from. The dialogue ventured into potential reformative measures for DISCOs, emphasizing privatization not just as an option but as a necessary strategy for certain contexts. Shaheera Tahir from PRIED highlighted K-Electric’s approachability and responsiveness to consumer issues, suggesting it as a model of accessibility that other DISCOs could emulate. She underscored the necessity of internal accountability and proactive maintenance to drive efficiency before any external restructuring. APTMA Energy advisor Tahir Basharat Cheema detailed the fiscal challenges facing the sector, including the high circular debt, and suggested that insights from K-Electric’s developmental initiatives could inform broader reforms across DISCOs, despite challenges in tariff reductions due to existing policy constraints. The consultation session also included key insights from other notable speakers, including MNA Dr Sharmila Faruqui, MNA Asad Alam Niazi, and Former Chairman NEPRA Tauseef H Farooqi, Advisor NEPRA Gul Hasan Bhutto among others who collectively emphasized the need for a robust federal and provincial collaboration to foster an efficient and sustainable energy sector in Pakistan.