Pakistan’s Energy Sector Reform – 9 DISCOs Boards Approved: Pakistan is going through hard times, especially concerning energy but there are some improvements. On Saturday, Energy Minister Musadik Masood Malik informed the Senate that out of eleven power distribution companies (DISCOs), nine have received notifications regarding their Boards of Directors (BoDs), while two are still waiting for approval. This implies the following objectives of this step are important for enhancing the country’s energy governance and efficiency.
The Role of DISCOs’ Boards in Energy Reform
The formation of new boards for DISCOs has raised controversy, particularly for firms within Sindh province, including the Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO). This matter was raised by Senator Saifullah Abro in the Parliament, where he mentioned that eight out of the ten DISCOs had the boards appointed but the two in Sindh are still waiting for the notification. This delay was seen to draw questions for the ability to fairly govern and effectively provide the powers in the region.
Musadik Malik, however, made it clear to the Senate that although the country’s economic and energy situation is not very good, efforts are being made to bring about change. He said that the boards of nine DISCOs have been completed, and PPMC, HESCO, and SEPCO are in final stages to complete their boards.
Progress in Economic Indicators
official inflation rate, which rose to 40%, has been brought down to 9%, revealing that the country is gradually stabilizing economically. Likewise, Pakistan, for instance, had a zero growth rate and is slowly progressing; those areas that are dependent on agriculture are enjoying a 6% development rate. This gives the impression that the country is slowly but surely going in the right track, although there is still so much to be done.
The Minister also stated openly his readiness to provide detailed information regarding these economic values, if it is permitted by the Senate. His message was clear: as stated, the system faces numerous problems that make it difficult to achieve positive change, though change is in process but at a very slow pace.
Measures to Address Pending Boards Successfully
Regarding the remaining three pending boards, Malik disclosed that regarding the board of PPMC, the shares had been nominated by the Prime Minister while the board had been approved by the Cabinet Committee on SOEs. The last but not the least announcement in the form of a gazette is expected shortly. Same to the boards for SEPCO and HESCO, for they have already been nominated and approved and are now pending for the formal notification that should be released within the next two weeks.
Politics and the Senate Quorum
When Malik was giving these updates, political tension brewed in the Senate. Only 12 members were in the hall when the quorum was called, which caused the session to be adjourned. The Opposition complained, but nevertheless, the schedule of the day had been worked through.
The next Senate meeting is to be held on September 15th, when more discussions on the energy sector and economic reforms might also ensue.
FAQs
Q1: What is implied by DISCOs in Pakistan?
A1: The DISCOs are involved in the generation and distribution of electricity to different areas in Pakistan; they have an important role to play in the supply of electricity.
Q2: Why are HESCO and SEPCO still awaiting their board appointments?
A2: As of now, both companies are still waiting for final approvals from the government, which should come out in the next two weeks.
Q3: Which economic changes did Minister Musadik Malik point out?
A3: Inflation has slowly declined from 40% to 9% while the growth rates have equally improved, particularly in the agricultural sector.
Q4: When will the pending boards for DISCOs be approved?
A4: The boards for PPMC, HESCO, and SEPCO are to be notified within two weeks’ time.
Q5: What transpired in the Senate meeting on Saturday?
A5: We had a problem in that the session was adjourned because there was not a quorum, but we were able to finish the agenda of the day.
