By Amir Khan

Inconsistent policies coupled with inefficient governance structures have exacerbated the woes of distribution companies (Discos), leaving them unable to fulfil their obligations to consumers. Talking to WealthPK, Zaffar Abbas, an additional secretary at the Ministry of Energy (Power Division), emphasised how these inconsistencies had cast a shadow over the struggling Discos, underlining a pressing need for a paradigm shift in the government's approach towards the power sector entities. "Inefficiencies within Discos, such as poor infrastructure, technical losses and high levels of electricity theft, contribute to widespread power outages and voltage fluctuations across the country," he further said.

"These issues not only disrupt daily life but also hamper industrial productivity, hindering economic growth. Moreover, the financial strain on Discos due to non-payment of bills exacerbates their operational challenges, leading to a vicious cycle of deteriorating service quality and financial instability," he noted. Abbas said the key lies in embracing transparency and professionalism in the concession process, ensuring qualified entities assume control, thereby mitigating further losses and fostering genuine progress in Pakistan's power sector. He pointed out that proposals to alleviate the government's burden by transferring Discos to provincial authorities had been met with mixed responses historically, with some provinces cautiously considering the idea while others remained hesitant to inherit these struggling entities. "However, recent discussions have sparked renewed interest in exploring long-term concessions, drawing parallels to the successful Turkish model."

He said addressing these issues within Discos was crucial for improving energy access, enhancing economic development, and ensuring a sustainable energy future for Pakistan. He said the overarching goal should not be to sustain unsustainable operations but rather foster genuine progress. "The burden of mismanagement weighs heavily on Discos, evident in their ongoing struggle to maintain operational integrity, as witnessed in the lackluster results of recent campaigns against energy theft." Talking to WealthPK, Hamid Mahmood Rana, Joint Secretary (Policy) at the Ministry of Energy (Power Division), noted that the prospect of Discos' privatisation loomed large, with many acknowledging it as a viable solution. "Yet the path forward remains uncertain, as political pressures and vested interests cloud rational decision-making." As Pakistan stands at a crossroads, the imperative for decisive action cannot be overstated. The time for half-measures and political posturing is over. Only through concerted efforts and unwavering commitment to reform can Pakistan's power sector emerge stronger and more resilient than ever before, noted Rana.

Credit: INP-WealthPk