IslamabadThe Energy Department formed a committee of six members to coordinate the continuous privatization process of Islamabad Electrical Company (IESCO), FAISALABAD Electric Supply (FESCO), and Gujranwala Electrical Company (GEPCO).
According to an official notification from the Energy Division, Mohamed Khaled Khan, Joint Secretary (CAD), Energy Department, was appointed as the committee organizer. Among the other members are Ghulam Rasool Anjum, Joint Secretary (P), Energy Department; Kamran Farooq Ansari, General Manager (I & T/P & U), Privatization Committee; Abdel -Bayt Abbasi, Advisor to the Privatization Committee; Anton Avagski, Management Director, Alvarez and March; Alexander Sevolopov, First Manager, Alvarez and March.
The notification states that the committee is authorized to participate in any additional members if necessary, especially from the Finance Department (FD), the Pakistani Energy Management Company (PPMC), the Central Energy Purchase Agency (CPPag), and Discos Company.
The newly formed committee has been appointed several major responsibilities. Coordination between the stakeholders, the review of the weekly progress of the due care process, and the facilitation of the financial advisor in collecting information and assembling it from Discos and the stakeholders concerned. In addition, it will solve implementation issues related to the privatization project and the escalation of concerns to the project control committee.
The committee has also been assigned to address the operational and tactical challenges that may arise during the privatization process.
In a letter dated February 13, 2025, the Privatization Committee sent the Chairman of the Executive Officers (FESCO CEOs) at Fesco, Gepco and IESCO to comply with specific conditions during the privatization process.
The committee, which was established under the Law of the Privatization Committee, 2000, is responsible for implementing policies of privatization of the federal government. On August 13, 2024, the Federal Cabinet decided to include Fesco, Gepco and IESCO in the first phase of the privatization program (2024-29). Consortium was appointed led by Alvarez and Middle Middle East Ltd. in Dubai, United Arab Emirates as a financial advisor to facilitate the participation of the private sector in this disk.
To ensure a smooth transition and prevent financial mismanagement, the privatization committee imposed many restrictions on the disk. Any new dates, except for the filling of vacancies due to resignations or retirement, will not be allowed without prior approval from the Privatization Committee. Likewise, no new promotional offers or incentives can be granted to employees, with the exception of those who already carry it before issuing the guidance, without prior approval. In addition, no new agreements or pledges to create financial or legal obligations can be concluded without the approval of the committee.
All disk is required to keep updated business records and account books. The procedures that lead to the loss of assets or waste are strictly banned. Any new obligations, unlike in the context of normal business, will require prior written approval. Moreover, no information with anyone may benefit from a third party or a possible buyer. The guidance also prevents any measures that can lead to industrial disorders. Any major administrative, financial or political decisions can have a material impact on commercial operations that will require prior approval from the Privatization Committee.
Fesco, Gepco and IESCO executives were directed to distribute these directives among their administrative units for each of them to ensure compliance. A copy of the implementation report must be submitted to the Privatization Committee for the purposes of saving the records.
According to the privatization committee judge, 2000 (it was amended until September 18, 2024), the committee bears many major responsibilities. Supervising activities related to privatization, including restructuring and abolishing restrictions. It also takes operational decisions on organizational issues such as licensing and tariff rules, and issues for state -owned institutions (SOES) included in the privatization program, and ensures compliance with all directives to prevent financial mismanagement. The committee is also responsible for preventing any measures that may lead to industrial disorders.
It is appropriate to mention that the committee consisting of six newly formed members is expected to play an important role in facilitating the privatization process, ensuring transparency, and addressing any challenges it faces during the transition. The committee will also closely monitor the fact -finding report, which is scheduled to be submitted to the Council of Ministers in March 2025.
