Finance Ministry Rejects Proposal to Hand Over Loss Making DISCOs to Pakistan Army

The Ministry of Finance has objected to the Power Division’s proposal to set up Performance Management Units (PMUs) at under-performing power Distribution Companies (DISCOs) led by senior military personnel. The Finance Division opposed the proposal contained in the draft summary for the establishment of PMUs headed by a BS-20 officer of the Pakistan Army and manned by officers from the Pakistan Administrative Service (PAS), Federal Investigation Agency (FIA), and intelligence agencies, reported Business Recorder. The Finance Division has objected to the idea because the Special Investment Facilitation Council (SIFC) decided to attach an Anti-Theft Task Force to DISCOs, first at Hyderabad Electric Supply Company (HESCO). The ministry said no such decision was made by it on the establishment of a Performance Management Unit. The Finance Division said theft control and performance management are two fundamentally separate things and that the proposed Terms of Reference (ToRs) and Key Performance Indicators (KPIs) for PMUs haven’t been shared. The Finance Division also requested that the Power Division give ToRs to open a bigger avenue for discussion on the proposal. It has argued that in its current form, the PMU will render formal management useless and harm governance at DISCOs, arguing that PMUs should be exclusively limited to anti-theft measures and bill recovery.