Federal Government gears up for privatization of PESCO

Story by Wahab Tariq Butt
Hong Kong

Privatization commission of Pakistan today gave advertisement in China Daily and various other Hong Kong newspapers inviting expression of interest from Chinese/Hong Kong financial advisory consortiums to provide financial advisory services to government of Pakistan about privatisation of Peshawar Electric Supply Corporation. According to the advertisement that was published in China Daily, the objective of the government is to divest various power sector generation and distribution assets to allow activities to be undertaken by private sector and improve efficiency of Pakistan’s power sector through competition, accountability, managerial autonomy and profit incentives.

It is worth noting that line losses in PESCO are greater than 30% and efforts by current government to bring these line losses and theft down have miserably failed. The federal government now seems to be moving forward with its Privatization plan even though news of PESCO’s privatisation lead to protests by its employees in March 2014.

Another interesting point is that KPK assembly and parliamentarians from KPK in national assembly seem aloof of government’s plans to privatize PESCO and no statements supporting or condemning this move surfaced in print or broadcast media.

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