Final bidding process may conclude by October
WASIM IQBAL
ISLAMABAD: A parliamentary panel was informed on Monday that the final bidding process for the privatization of Pakistan International Airlines (PIA) is likely to conclude by October, while the financial audits of three DISCOs – IESCO, FESCO, and GEPCO – are expected to be completed by August 30.
At a meeting of the National Assembly’s Standing Committee on Privatization, held here with Farooq Sattar in the chair, officials informed the committee that the privatization of land belonging to PECO has been referred to the Special Investment Facilitation Council (SIFC) for further consideration.
During the briefing, the Secretary for Privatization informed the panel that the due diligence process for PIA’s privatization has already commenced, with several business houses expressing interest.
The process is expected to conclude in the last quarter of the year. The Committee directed that the PIA privatisation be conducted in a fully transparent manner. It also instructed that the list of members of the Privatization Board be presented at the next meeting.
Committee member Ali Asghar Khan expressed serious concern regarding the pre-qualified bidder, Fauji Fertilizer Company Limited, and emphasized that the Privatization Commission must ensure a level playing field for all bidders in the PIA privatization.
Following the briefing and deliberation on PECO, the committee directed the government to resolve issues concerning the organization.
It was advised that efforts should first focus on restoring PECO; however, if restoration proves unfeasible, privatization may be considered.
The panel further directed that irregularities committed during the tenure of former Managing Director Anees be investigated and that a detailed report be submitted.
Earlier, officials from the Ministry of Industries and Production informed the committee of an alleged decline in the government’s shareholding in PECO – from 68 percent to 33 percent – which has also been referred to the SIFC. A financial audit of PECO for the past 10 years has already been ordered.
Responding to questions about the privatization of DISCOs, Joint Secretary of the Ministry of Power, Ghulam Rasool, stated that financial audits of IESCO, FESCO, and GEPCO will be completed by August 30, 2025, while the audit of MEPCO (Multan Electric Power Company) will be finalized by September 30, 2025, for privatization purposes.
The panel expressed concern over load-shedding across the country. It was informed that there is no electricity shortfall; rather, load management is being implemented.
Feeders with high electricity theft or excessive line losses are subjected to load management. The committee advised that instead of imposing load-shedding on entire feeders, electricity supply should be cut only to those consumers or feeders directly involved in theft or causing high losses.
It further recommended that the Minister for Power hold regional meetings with Members of the National Assembly (MNAs) to address public concerns and develop concrete solutions.
The panel also expressed serious concern over the privatization of Utility Stores Corporations, emphasizing that continuing the process despite the committee’s reservations is highly alarming.
The Secretary informed that while Utility Store operations have ceased, safeguarding the rights of the 10,000 to 11,000 employees remains a top government priority.
It was noted that Utility Stores operated profitably as long as subsidies were provided; however, operations went into loss following the withdrawal of subsidies.
The government has committed to settling dues of employees and vendors in two phases, totalling Rs27 billion. The committee directed that a detailed breakdown of outstanding dues be presented at the next meeting.
