Senate Reviews Privatization Commission Bill 2025 and Power Sector Plans

The Senate Standing Committee on Privatization met under the leadership of Senator Afnan Ullah Khan to review Pakistan’s ongoing privatization plans. The committee focused on the Privatization Commission (Amendment) Bill, 2025, and updates on Pakistan International Airlines Corporation Limited (PIACL) and Distribution Companies (DISCOs).

Senators Bilal Ahmed Khan, Khalil Tahir, Umer Farooq, and Palwasha Mohammed Zai Khan attended, with Senator Saleem Mandviwala present as a special invitee.

The session opened with a review of earlier committee recommendations. During a briefing by the Power Division, officials confirmed that the Gudu and Nandipur power plants are ready for privatization.

On DISCOs, the committee was informed that older GENCOs have either been scrapped due to obsolete machinery or are operating under a Government-to-Government (G2G) model. Senator Khan asked whether the DISCOs had been offered to the provinces. Officials said they were, but the provinces refused.

The federal government is now considering privatization. Concerns were raised about the profitability of DISCOs under private management. Officials assured the committee that most preparatory work has been completed, with the process set to begin after necessary approvals.

The committee also discussed the Privatization Commission (Amendment) Bill, 2025. Officials described the proposed amendments as minor, intended to align the commission’s operations with other laws and Supreme Court directives. Senators deliberated over the bill’s details before moving on to the PIACL briefing.

Regarding PIACL, the Privatization Commission Secretary stated that all major obstacles previously delaying privatization have been removed. Most proceeds from the sale will be reinvested in PIACL, which continues to face severe financial shortages. Senator Khan stressed transparency in the bidding process.

It was clarified that only the core aviation business will be privatized, while properties like the Roosevelt Hotel will remain government-owned. The chairman also requested a detailed list of all foreign PIACL properties, including addresses and market values.

The committee was further briefed on other entities included in the privatization list, including Pakistan Minerals Development Corporation (PMDC), Saindak Metals Limited (SML), and National Insurance Company Limited (NICL). Officials noted that these efforts are still in the initial stages. Senator Khan directed that the committee be updated again after the Cabinet Committee on Privatization grants approval.