The International Monetary Fund (IMF) has urged the government for timely completion of privatization of the power distribution companies, official sources said. “It will be unwise to extend running the public funded power distribution companies,” the IMF is quoted as telling to the government authorities. “The Government of Pakistan should privatize the power distribution companies in time”, the lender stressed. The IMF has said that the losses of the distribution companies are the major cause of the deficit.

“The losses in the energy sector are a major part of the losses to the state-owned corporations,” IMF referred as saying. “Privatization is necessary to remove the power distribution companies’ losses from the public sector budget,” the IMF said. “The budget deficit would remain out of control until the distribution companies are not being privatized,” sources quoted the IMF as saying. According to sources, the IMF said that the delay in privatization of the distribution companies would bring more losses to the economy.

It is to be mentioned here that Pakistan is advancing a broader overhaul of its electricity distribution system, with the government targeting the privatization of three power distribution companies in the first quarter of 2027. The plan covers Faisalabad Electric Supply Company, Gujranwala Electric Power Company and Islamabad Electric Supply Company, while additional DISCO transactions are being scheduled later in 2027.

Credit: Independent News Pakistan (INP)