Discos privatisation: senators say provinces must approve, PM's adviser says the 2011 CCI decision is enough

The government and a group of senators disagree on whether the sale of Pakistan's state-owned electricity distribution companies (Discos) needs fresh approval from the provinces, Dawn reported on Thursday. The dispute came up at a subcommittee of the Senate Functional Committee on Devolution, convened by Senator Zamir Hussain Ghumro.

The two positions

The government: Muhammad Ali, the Prime Minister's Adviser on Privatisation, said no new approval from the Council of Common Interests (CCI) is needed. He pointed to:

• the 2011 CCI decision approving the privatisation of three power generation companies and nine distribution companies;
• the National Electricity Policy, approved by the CCI on 21 June 2021, which recommends exploring privatisation of state-owned entities;
• a Law Division letter of 25 September 2026 confirming that no fresh CCI approval is required.

Ali said the Discos have caused losses of more than $30 billion over 15 years, and that sending the matter back to the CCI would cause delays, hurt investor confidence and leave the companies' finances worse.

The senators: Ghumro said the CCI's constitutional role cannot be bypassed and asked whether selling the Discos fits Article 157 of the Constitution, which deals with electricity and gives provinces a say, since distribution affects provincial interests. Senators Jan Muhammad Buledi and Poonjo Bheel also attended. Officials told the panel the CCI has taken 11 decisions on the subject and that no province has formally recorded an objection; they promised to share the record of provincial consultations.

Why it matters to your bill

Disco losses (electricity stolen or never billed, and bills not recovered) end up in circular debt, which is recovered through surcharges on every consumer's bill. Supporters of privatisation argue private owners would cut theft and losses; critics, including some provinces, worry about tariffs and job cuts. Either way, nothing changes on your bill until a sale is agreed, which has not happened yet. To see how your current bill is built up, try our electricity bill calculator or the units calculator.

Also at the meeting: Rs2.6 trillion on devolved subjects

The subcommittee also questioned federal spending on subjects handed to the provinces by the 18th Amendment in 2010. The chairman said about Rs2.6 trillion had been spent on the federal health and education ministries over 16 years, and asked what the constitutional basis was. Auditor General officials said audits follow the budgets Parliament approves.