Islamabad, July 29: The government is considering applying the Pakistan International Airlines (PIA) privatization model to the country’s electricity distribution companies (DISCOs) as part of broader efforts to improve efficiency, reduce financial losses, and attract private investment into the power sector.
Officials familiar with the discussions said the proposal envisions adapting elements of the framework developed for PIA’s privatization to facilitate the restructuring and potential sale of selected DISCOs. The objective is to enhance operational performance while easing the financial burden on the public sector.
The move comes as authorities continue to pursue reforms aimed at addressing longstanding challenges in the power sector, including high transmission and distribution losses, electricity theft, and mounting circular debt. Policymakers believe greater private sector participation could help modernize operations and improve service delivery.
Government representatives said no final decision has been made, and consultations with stakeholders are ongoing to determine the most suitable privatization framework. Officials emphasized that any future transactions would be carried out in accordance with legal and regulatory requirements while safeguarding consumer interests.
Energy experts say restructuring the distribution companies before privatization could make them more attractive to investors by improving governance, financial transparency, and operational efficiency. They also stress the importance of strong regulatory oversight to ensure reliable electricity supply and protect consumers after any ownership changes.
Business groups have largely welcomed efforts to reform the power sector, arguing that more efficient distribution companies could help reduce outages, improve bill collection, and strengthen investor confidence. However, labor representatives have urged the government to protect employees’ rights during any privatization process.
The proposal remains under review as the government continues its broader economic reform agenda, with further details expected following consultations among relevant ministries, regulators, and potential investors.
