The planned privatization of Pakistan’s power distribution companies has come under fresh scrutiny, with a Senate committee saying the process should not move ahead until the Council of Common Interests examines the matter.
The Senate Sub Committee on Devolution took up the issue while reviewing the federal government’s compliance with constitutional requirements on matters involving provinces. The committee, chaired by Senator Zamir Hussain Ghumro, objected to the Privatization Commission proceeding without fresh CCI approval.
Ghumro warned that the Privatization Commission could face parliamentary action if it ignored the committee’s instructions. He said the issue of Discos had a direct provincial dimension and could not be dealt with solely at the federal level.
The committee’s position is based on its view that Discos are carrying out functions that fall within the provincial domain. It said these functions should either be formally authorized through the provincial assemblies or transferred to the provinces.
The panel also questioned the transparency of the wider privatization process and referred to previous concerns surrounding the sale of Pakistan Steel Mills and Pakistan International Airlines. It called for matters involving provincial and CCI subjects to be handled through the constitutional forum prescribed for them.
The discussion was part of a broader review of federal institutions and spending on subjects devolved under the 18th Constitutional Amendment.
Ghumro said the committee had identified 24 ministries and organizations dealing with provincial or CCI matters that it wanted abolished, alongside a proposed reduction in federal expenditure from Rs. 19 trillion to Rs. 13 trillion.
The committee also questioned federal spending on institutions dealing with provincial and CCI subjects. It directed the Auditor General of Pakistan and Controller General of Accounts to provide audited expenditure details for the past 16 years, with Ghumro saying the spending could run into trillions of rupees.
The Cabinet Division told the panel that issues raised during its August 17 and September 8 meetings had already been forwarded to Prime Minister Shehbaz Sharif. The Cabinet Secretary also described the CCI as an important constitutional forum for dealing with matters.
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