ISLAMABAD: A parliamentary panel was informed on Thursday that Guddu and Nandipur power plants are ready for privatisation. The Power Division informed the Senate Standing Committee on Privatisation that all power distribution companies (DISCOs) are being privatized under a phased plan, with preparations completed from the government’s side. Senator Afnanullah Khan chaired the meeting of the committee. Regarding the latest developments in the privatisation of DISCOs, the officials of the Power Division stated that the old GENCOs have either been sold as scrap due to obsolete machinery or are being operated under a Government-to-Government (G2G) model. Two key thermal plants: PD ‘reluctant’ to share sell-off timelines The chairman questioned whether the DISCOs had been offered to the provinces. It was informed that the provinces were offered the DISCOs; however, after they refused to take over, the Federal Government is considering their privatisation. The committee expressed concern over the profitability of DISCOs under private management. The Committee was informed that most of the preparatory work for the privatisation of DISCOs has been completed and that the privatisation process will be initiated after obtaining necessary approvals, in accordance with due process. The officials said IESCO, FESCO, and GEPCO will be privatized in the first phase, followed by PESCO and SEPCO in the second phase, while LESCO, MEPCO, and HESCO are planned for the third phase. The Privatisation Commission secretary said bidding for the first three DISCOs will begin in January and all three will be auctioned separately, with privatisation expected to be completed by mid-next year. The Privatisation Commission told the Senate Standing Committee that bidding for Pakistan International Airlines will be held on December 23 and will be broadcast live on the prime minister’s directive. Officials said 51 to 100 percent shares of PIA will be offered, with a second bidding round planned if initial bids fall short. The committee was also given a detailed briefing on the status of PIACL privatisation. The Secretary, Privatisation Commission, informed the Committee that all major impediments which had previously hindered the privatisation process of PIACL have been removed. It was further informed that a majority of the funds generated through privatisation will be injected into PIACL, which is facing acute financial shortages. The chairman enquired about the transparency of the bidding process and directed the Privatisation Commission to ensure complete transparency. The Committee was also informed that only the core/aviation business of PIACL is being privatized, while properties such as the Roosevelt Hotel and other assets will remain the property of the Government of Pakistan. The chairman further directed the Privatisation Commission to provide a list of all foreign properties of PIACL, along with their addresses and market values that form part of the privatisation process. The commission said all bidders have completed due diligence and have been given access to PIA’s records, routes, and facilities, with final commercial terms to be concluded immediately. Each bidder must deposit Rs. 2 billion as earnest money, while previous issues related to taxes, GST exemptions, and legacy liabilities have been resolved after consultations with the IMF. Officials added that routes to the UK and Europe have reopened and that the successful investor will be required to inject Rs 80 billion into PIA immediately after privatisation. The standing committee considered the Privatisation Commission (Amendment) Bill, 2025, referred to it by the House. The committee was briefed that the proposed amendments are minor in nature and are intended to ensure uniformity and consistency with other laws as well as the directions of the Supreme Court. The committee deliberated over the draft bill and discussed it in detail. The committee was additionally informed that Pakistan Minerals Development Corporation (PMDC), Saindak Metals Limited (SML), and National Insurance Company Limited (NICL) have been included in the privatisation list; however, the process is currently at an initial stage. The Chairman directed that the Committee be briefed again after approval by the Cabinet Committee on Privatisation. Copyright Business Recorder, 2025