{
  "id": 6363531,
  "title": "Senate panel questions proposed privatisation of power distribution cos",
  "url": "https://urgent.news/2026/09/09/senate-panel-questions-proposed-privatisation-of-power-distribution",
  "topic": "world",
  "section": "World",
  "published": "2026-09-09T00:39:59.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40438521/senate-panel-questions-proposed-privatisation-of-power-distribution-cos"
  },
  "original_language": "en",
  "account": "ISLAMABAD - A Senate panel on Tuesday raised concerns over the proposed privatization of power distribution companies, highlighting the high recovery rates of major DISCOs and suggesting that the issue be revisited by the Council of Common Interests (CCI). The Sub-Committee of the Senate Functional Committee on Devolution, led by Zamir Hussain Ghumro, noted that the federal government was moving forward with privatization of distribution companies under its purview, even though recovery rates stood at 100% in Islamabad, 98% in Faisalabad, and 99% in Lahore. The committee was reminded that the CCI had previously deliberated on the matter in 2011, and Ghumro questioned the previous decision's relevance.\n\nSenator Jan Muhammad Buledi pointed out that the CCI had undergone multiple reconstitutions since 2011. The panel urged that the proposed privatization be subjected to fresh consideration by the CCI and an appropriate decision, emphasizing that power distribution should adhere to the constitutional framework of devolution. Ghumro invoked Article 157 of the Constitution, which grants provincial governments authority over electricity distribution within their respective provinces, encompassing tariff matters, consumption taxes, establishment of power houses, and grid stations.\n\nThe committee strongly opposed the continued existence of 24 federal ministries and institutions handling subjects devolved to the provinces under the 18th Constitutional Amendment. They unanimously rejected the Cabinet Division's argument that these bodies were necessary for coordination and international commitments, asserting that their justification had already been dismissed in a prior meeting. Ghumro contended that retaining the 24 ministries and institutions at the federal level burdened the federal government with expenditures amounting to approximately Rs19 trillion, while the total tax and non-tax revenue stood at about Rs20 trillion. He directed the Cabinet Division to bring the matter to Prime Minister Shehbaz Sharif's attention and supply a fresh compliance report within two weeks.\n\nThe panel instructed the Establishment Division to transfer police-related service matters to the provinces, noting that police responsibilities had become exclusively provincial after a relevant entry was removed from the Concurrent Legislative List. They further emphasized compliance with provincial rights under Article 172(3), particularly the equal and joint ownership of mineral oil and natural gas, which they deemed a serious breach of privilege due to the reported failure to seek provincial nominations for the board of directors of Pakistan Petroleum Ltd (PPL). Additionally, the committee learned that six Thar coal-based power plants were operational, with four running entirely on Thar coal, and the other two using Thar coal for 33% and 20% of their fuel requirements, respectively.",
  "summary": "ISLAMABAD: A Senate panel on Tuesday questioned the proposed privatisation of power distribution companies, noting the high recovery rates of major DISCOs and recommending that the matter be placed before the Council of Common Interests (CCI) afresh. The Sub-Committee of the Senate Functional Committee on Devolution, chaired by Zamir Hussain Ghumro, observed that the federal government was…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}