Provinces Owe Rs161 Billion in Power Dues, Govt Plans Privatization of Distribution Companies

ISLAMABAD:Power Division officials informed the Senate Standing Committee on Power that a total of Rs161 billion in electricity dues are owed by provinces as of March 31, 2025. The committee, chaired by Senator Mohsin Aziz, was briefed on the province-wise breakdown of outstanding payments.

According to the Power Division:

* **Khyber Pakhtunkhwa** owes Rs10 billion
* **Punjab** owes Rs42 billion
* **Sindh** owes Rs67 billion
* **Balochistan** owes Rs42 billion

The committee noted with concern that **none of the provinces, except Khyber Pakhtunkhwa**, have signed the proposed memorandum of understanding aimed at resolving the issue. The committee chair expressed strong displeasure over the provincial governments’ negligence and directed authorities to initiate immediate recovery of the dues.

During the session, the **Secretary of Power Division** announced the government’s plan to **privatize three power distribution companies** in the first phase: **IESCO, FESCO, and GEPCO**. In the second phase, **LESCO, MEPCO, and HESCO** will also be privatized.

The committee members voiced **serious concerns about the future of employees** in these companies and urged the ministry to develop **employee-friendly policies**, including options for **voluntary early retirement**, to safeguard workers’ rights during the privatization process.

The developments signal a significant shift in the government’s strategy to address the financial and operational inefficiencies in the power sector, with a growing focus on privatization, accountability, and institutional reforms.