ISLAMABAD: The Senate Standing Committee on Privatization has expressed serious concern over the financial and operational challenges facing the Quetta Electric Supply Company (QESCO) during discussions on the proposed privatization of power distribution companies (DISCOs).
The meeting, chaired by Senator Dr. Afnan Ullah Khan, reviewed the progress of DISCO privatization and examined the performance of several power distribution companies, including QESCO.
Committee members were informed that QESCO continues to face substantial financial losses, operational inefficiencies, and management challenges, raising concerns about its readiness for privatization.
Senator Bilal Ahmed Khan emphasized that loss-making entities should not be ignored and called for immediate corrective measures to improve performance before any privatization process is finalized.
The committee also discussed the proposed Single Buyer Model, under which power sector reforms and DISCO privatization are being considered. Officials stated that consultations and technical assessments are still underway to ensure regulatory compliance and operational feasibility.
Chairman Dr. Afnan Ullah Khan stressed that lessons from previous privatization experiences, including PTCL, should be carefully considered. He warned that privatizing financially troubled entities without addressing structural weaknesses could create long-term challenges for consumers and the energy sector.
Officials informed the committee that discussions with relevant stakeholders, including the Petroleum Division, are continuing. However, no final timeline has been announced for the privatization of QESCO or other distribution companies.
The committee underscored the need for comprehensive reforms aimed at improving efficiency, reducing losses, and ensuring reliable electricity supply before moving forward with major privatization decisions.