Prime Minister Shehbaz Sharif has constituted an eight-member task force to oversee the implementation of structural reforms in the power sector.
According to a press release issued by the Prime Minister’s Office (PMO), the task force has been formed to reduce the financial burden on the power sector being borne by the government, and to enable the establishment of an efficient, liquid and self-sustaining competitive power market
The task force comprises Federal Minister for Power Sardar Awais Khan Leghari as chairman, Special Assistant to the Prime Minister on Power Muhammad Ali as co-chairman, Lt Gen Muhammad Zafar Iqbal as national coordinator, and BPS-21 officer from the Secretariat Group Syed Zakaria Ali Shah, and one nominee each from the Nepra, Central Power Purchasing Agency, Private Power and Infrastructure Board and Securities and Exchange Commission of Pakistan as members.
The ToRs of the task force are recommending measures for making the power sector financially and operationally sustainable, overseeing the development of an efficient and liquid power market design along with its implementation, recommending utilization of excess capacity by the industries/SEZs for stimulating growth, reviewing and recommending measures to reduce capacity payments, including but not limited to shutting down certain plants and taking any other necessary measures as deemed appropriate, reviewing matters pertaining to the set-up cost of various IPPs in the country and identifying malpractices, procedural weaknesses and regulatory gaps with a view to recommending the way forward to rectify them, reviewing compliance of the IPPs with parameters/terms and conditions of various agreements signed with the relevant government agencies/institutions, and recommending measures to resolve the issue of circular debt stock in the energy sector.
The role of the task force shall not be restricted to fact finding and shall be responsible for overseeing the implementation of its recommendations.
The task force shall be given full support, including requisite budget allocation, by the government.
The task force will submit its recommendations along with the implementation plan to the prime minister within one month for consideration.
Earlier, the federal government notified the privatization of 13 power distribution companies (DISCOs) as the Ministry of Energy unveiled a plan to privatize these entities in phases.
According to the notification, the Ministry of Energy issued directives for the privatization of 12 organizations in the power sector.
The privatization process will be carried out in phases, with the first phase involving the privatization of four Discos. The four power companies include FESCO, GEPCO, HESCO, and IESCO.
The second phase will include the privatization of MEPCO, PESCO, and other companies, as per the notification
The privatization process is expected to be completed in phases, with the government aiming to attract private investment in the power sector.
from Business News updates - Latest news stories on Economy from Pakistan
