ISLAMABAD – Pakistan’s plan to privatize power distribution companies (DISCOs) has faced delays, officials confirmed. Several key reforms linked to the International Monetary Fund (IMF) remain incomplete.
According to sources within the Finance Ministry, preparing a detailed policy action plan for the privatization and transactions of power distribution companies is still pending. Out of 22 structural benchmarks set by the IMF, five are yet to be fully implemented.
Officials said the Corruption and Governance Diagnostic Assessment Report has not been published. Amendments to the State-Owned Enterprises (SOEs) Act remain unfinished, another critical requirement of the IMF.
Additional pending reforms include changes to the Sovereign Wealth Fund law and the redrafting of the Public Finance Management (PFM) Act. Authorities emphasized that completing these structural benchmarks is essential for Pakistan’s ongoing economic program.
The delays in reforms may affect the pace of the power distribution privatization process. Sources said timely completion is crucial to unlocking further IMF support and ensuring the continuity of the $7 billion loan program.
Finance Ministry officials are coordinating closely with IMF representatives to finalize the remaining actions. They said that while progress has been made on other benchmarks, structural reforms in power distribution are proving complex and time-consuming.
Pakistan remains committed to privatizing its power distribution sector and meeting IMF conditions. Officials expect to present a revised timeline to the IMF soon, ensuring the completion of pending reforms and the continuation of economic support.
The power distribution privatization plan is considered vital for improving efficiency, reducing losses, and attracting private investment in Pakistan’s energy sector. Authorities continue to prioritize reforms while ensuring compliance with international financial requirements.
In other related news also read IESCO Arrests Six Thousand Electricity Thieves Across Islamabad City
