Government Intervenes in DISCOs, Appoints New Leadership

In a significant move, the government has intervened in the operations of nine power distribution companies (DISCOs) in Pakistan due to staggering losses amounting to Rs589 billion in the current fiscal year. The Cabinet Committee on State-Owned Enterprises (CCoSOEs) has dissolved the boards of Faisalabad, Islamabad, Gujranwala, Multan, Lahore, Hazara, Quetta, Peshawar, and Tribal Areas power distribution companies. New board members have been appointed to lead these DISCOs following the failure of performance improvement agreements signed with the previous leadership.

The CCoSOEs took action by reshuffling the board nominations for six DISCOs while maintaining the recommendations for three others. Notably, the Quetta Electric Supply Company (Qesco) and Peshawar Electric Supply Company (Pesco) faced the highest annual losses of Rs138 billion and Rs137 billion, respectively, leading to the dismissal of their boards. Mahfooz Ali Khan and Himayat Ullah Khan have been appointed as the new chairmen of Qesco and Pesco, respectively. Additionally, the boards of Tesco, Hazara Electric Supply Company (Hazeco), Faisalabad Electric Supply Company (Fesco), Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Lahore Electric Supply Company (Lesco), and Islamabad Electric Supply Company (Iesco) have also been restructured due to their substantial financial losses.

This decisive action by the government aims to address the financial challenges faced by these DISCOs and improve their operational efficiency. By appointing new leadership and restructuring the boards, the government is taking proactive steps to ensure the stability and sustainability of the power distribution sector in Pakistan.