ISLAMABAD: Minister for Privatization Daniyal Aziz said on Tuesday that non-determination of multi-year tariff (MYT) by the National Electric Power Regulatory Authority (Nepra) is principal obstacle to the sell-off of power sector companies.

While briefing the Senate Standing Committee on Privatization and Statistics chaired by Senator Mohsin Aziz, Daniyal Aziz stated that privatization of power sector companies – distribution and generation companies – will remain a grey area without non-determination of the multi-year tariff by Nepra.

He stated that Nepra has given partial tariff for the power sector companies. He added that recovery targets of Nepra for distribution companies are higher. The minister said that even the government-owned Discos are apprehensive about their survival on the assumption cited by the Nerpa for tariff determination.

He said that the present government wants to privatize at least one Disco and one Genco in the next few months. Of the Faisalabad Electric Supply Company (FESCO) and Gujranwala Electric Power Company (GEPCO), the government wants to privatize one of them and one generation company Jamshoro power plant. He said that with the increase in power production, the quantum of circular debt will also increase if structural issues of power sector are not resolved.

He was also optimistic about receiving long outstanding US $800 million from Etisalat for privatisation of Pakistan Telecommunication Company Limited (PTCL), as Etislaat has shown willingness for evaluation of 31 properties, which were not transferred to the buyers. He said that higher evaluation price of 31 properties will be deducted from $800 million and rest of the amount will be given to Pakistan.