Caretaker PM allows transfer of electricity distribution companies to provincial ownership
Under the new arrangement, the current uniform distribution of electricity across the country will be discontinued, and the responsibility for determining electricity rates and administering subsidies will be delegated to the respective provinces.


Islamabad: The caretaker Prime Minister has granted approval to forward a comprehensive proposal to the federal cabinet, recommending the transfer of electricity distribution companies to provincial ownership. This decision comes as part of the caretaker federal government's initiative to revamp the existing framework of electricity sales, distribution, and tariff regulations.
Under the new arrangement, the current uniform distribution of electricity across the country will be discontinued, and the responsibility for determining electricity rates and administering subsidies will be delegated to the respective provinces.
In a significant move, the caretaker government has finalized plans to transfer ownership of Hyderabad and Sukkur Electric Supply Companies to the provincial administration of Sindh. Similarly, the Quetta Electric Supply Company will be handed over to the authorities in Balochistan.
Moreover, the ownership of prominent Electric Supply Companies, including Lahore, Gujranwala, Faisalabad, and Multan, is slated for transfer to the province of Punjab. In the case of Islamabad Electric Supply Company, ownership will be jointly vested between Punjab and the federal government. Furthermore, Peshawar and Tribal Area Electric Supply Companies are anticipated to fall under the ownership of Khyber Pakhtunkhwa.
The comprehensive document delineates a strategic policy framework aimed at expediting the seamless transfer of distribution companies to provincial control. This policy reformation has been prompted by the imperative need to address the growing financial strain on the national treasury caused by rampant electricity theft and non-recovery of dues. The current scenario is deemed unsustainable, warranting a comprehensive overhaul of the existing electricity distribution structure.

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